Calculating Costs of Issuing Stock Howett Pockett, Inc., plans to issue 10 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $33.80 per share and they will charge an underwriter's spread of 5.5 percent of the gross proceeds. In addition, Howett Pockett must pay $3.4 million in legal and other administrative expenses for the seasoned stock offering. Calculate the gross proceeds and the total funds received by Howett Pockett from the sale of the 10 million shares of stock. (LG4)