A company wants to raise $500 million in a new stock issue. Its investment banker indicates that the sale of new stock will require 8 percent under-pricing and a 7 percent spread. (Hint: the underpricing is 8% of the current stock price, and the spread is 7% of the issue price)

A; assuming the company's stock price does not change from it's current price of $75/share, how many shares must the company sell AND at what price to the public?

B: How much money will the invesment banking syndicates earn on the sale?

C:Is the 8% underpricing a cash flow? Is it a cost? If so, to whom?

PLEASE SHOW WORK AND PROVIDE EXPLANATION. THANK YOU