Calculating Costs of Issuing Stock Paige's Purses, Inc. needs to raise $25.30 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 $53 per share and Paige's will receive $45.75 per share. What is the underwriter's spread per share on the issue?

$0

$7.25

$45.75

$53