Howett Pockett, Inc., plans to issue 10.8 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $35.40 per share and they will charge an underwriter?s spread of 5.0 percent of the gross proceeds. In addition, Howett Pockett must pay $4.2 million in legal and other administrative expenses for the seasoned stock offering.