1. Hardy Boys Construction has hired Nancy Drew and Co., a premier investment banking firm, to assist in raising capital. Hardy Boys is currently valued at $65 million, has 4 million shares outstanding and wishes to issue and additional 1 million shares. If Nancy Drew &Co. charges a 7% spread, how much will Hardy Boys raise net of the spread? (Hint: first find the offer price.)

a. $15.00 million

b. $14.85 million

c. $14.33 million

d. $13.71 million