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You are negotiating with your underwriters in a firm commitment offering of 9 million primary shares. You have two options: set the IPO price at
You are negotiating with your underwriters in a firm commitment offering of 9 million primary shares. You have two options: set the IPO price at $25.00 per share with a spread of 7%, or set the price at $24.20 per share with a spread of 4%. Which option raises more money for your firm? The net price to the firm of the first option is $ (Round to the nearest cent.)
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