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A firm will execute a seasoned equity offer that will provide the firm with $1.68 million in net proceeds (i.e., net of direct expenses). The
A firm will execute a seasoned equity offer that will provide the firm with $1.68 million in net proceeds (i.e., net of direct expenses). The underwriting spread is 7.35 percent and the offering is for 50,000 shares. For simplicity, assume there are no other direct expenses except for the underwriting spread. What is the offer price? Round your answer to the nearest cent.
a. $36.07
b. $37.25
c. $36.27
d. $34.50
e. $33.60
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