Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares

Question:

Dixon is considering a public offering of common stock. The firm will offer one million shares of for sale. The estimated selling price is $45 per share, with Dixon Corp. receiving $40.50 per share after the offering. Additional registration fees are estimated at $275,000.
a) What is the spread in dollars? In percent?
b) What are the total expenses of the issue?
c) If Dixon Corp. needs to generate $28 million, how many shares will have to be sold?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...