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You are negotiating with your underwriters in a firm commitment offering of 10 million primary shares. You have two options: set the IPO price at

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You are negotiating with your underwriters in a firm commitment offering of 10 million primary shares. You have two options: set the IPO price at $20.00 per share with a spread of 7%, or set the price at $19.50 per share with a spread of 4%. Which option raises more money for your firm

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