Don's Captain Morgan, Inc., needs to raise $12.60 million to finance plant expansion. In discussions with Its Investment bank, Don's learns that the bankers recommend an offer price (or gross proceeds) of $20.50 per share and Don's will receive $18.25 per share. Calculate the underwriter's spread per share on the issue. (Round your answer to 2 decimal places.) Underwriter's per share spread How many shares of stock will Don's need to sell in order to receive the $12.60 million It needs? Number of shares sold shares

Don's Captain Morgan, Inc., needs to raise $12.60 million to finance plant expansion. In discussions with Its Investment bank, Don's learns that the bankers recommend an offer price (or gross proceeds) of $20.50 per share and Don's will receive $18.25 per share. Calculate the underwriter's spread per share on the issue. (Round your answer to 2 decimal places.) Underwriter's per share spread How many shares of stock will Don's need to sell in order to receive the $12.60 million It needs? Number of shares sold shares

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 26P

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