Your firm is selling

3

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

$17.36

per share. Your underwriters have proposed a spread of

8.6%,

but you would like to lower it to

7.6%.

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

8.6%

to get

$17.36

per share?