Share Price and Net Proceeds

Tiger Golf Supplies has $$15$ million in earnings with $4$ million shares outstanding. Its investment banker thinks the stock should trade at a P$/$E ratio of $22.$

a$)$ If there is an underwriting spread of $2\mathrm{.}8\%,$ what should the price to the public be$?$

b$)$ What would the firm net?

Solution:

Public$($retail$)$ price $=|$

Net Firm Proceeds $=$

Net Frim Proceeds $=$