Himmel Corp.wants to raise $100 million in a new stock issue.Its investment banker indicates that the sale of new stock will require 12 percent underpricing and a 7 percent spread.a.Assuming Himmel's stock price does not change from its current price of $50 per share,how many shares must the company sell and at what price to the public?
b.How much money will the investment banking syndicate earn on the sale?
c.Is the 12 percent underpricing a cash flow? Is it a cost? If so,to whom?

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The Answer of Himmel Corp.wants to raise $100 million in a new stock issue.Its investment banker indicates that the sale of new stock will require 12 percent underpricing and a 7 percent spread.a.Assuming Himmel's stock price does not change from its current price of $50 per share,how many shares must the company sell and at what price to the public?
b.How much money will the investment banking syndicate earn on the sale?
c.Is the 12 percent underpricing a cash flow? Is it a cost? If so,to whom?