Your firm is selling

10

million shares in an IPO. You are targeting an offer price of

$14.13

per share. Your underwriters have proposed a spread of

8.3%,

but you would like to lower it to

6.8%.

However, you are concerned that if you do so, they will argue for a lower offer price. Given the potential savings from a lower spread, how much lower can the offer price go before you would have preferred to pay

8.3%

to get

$14.13

per share?