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Calculating Costs of Issuing Stock Paige's Purses, Inc. needs to raise $26.90 million to finance plant expansion. In discussions with its investment bank, Paige's learns
Calculating Costs of Issuing Stock Paige's Purses, Inc. needs to raise $26.90 million to finance plant expansion. In discussions with its investment bank, Paige's learns that the bankers recommend an offer price (or gross proceeds) of $69 per share and Paige's will receive $49.75 per share. What is the underwriter's spread per share on the issue?
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