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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 8%, or set the price at $24.60 per share with a spread of 6%. Which option raises more money for your firm?

The net price to the firm of the first option is

The net price to the firm of the second option is

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