Calculating Costs of Issuing Stock Harper's Dog Pens, Inc., with the help of its investment bank, recently issued 8.5 million shares of new stock. The offer price on the stock was $12.00 per share and Harper's received a total of $97.75 million from the stock offering. Calculate the net proceeds and the underwriter's spread charged by the underwriter to Harper's Dog Pens, Inc. What percentage of the gross proceeds is the investment bank charging Harper's Dog Pens for underwriting the stock issue? (LG4)