Problemdixon corporation is considering a public offering, Ask an Expert

Accounting

Problem:

Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. The estimated selling price is $45 per share, with Dixon Corp. receiving $40.50 per share after the offering. Additional registration fees are estimated at $275,000.

Required:

Question 1: What is the spread in dollars? In percent?

Question 2: What are the total expenses of the issue?

Question 3: If Dixon Corp. needs to generate $28 million, how many shares will have to be sold?

Note: Please provide full description.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165025

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