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 $30 per share with Dixon Corp. receiving $26.25 per share after the offering. Registration fees are estimated at $275,000. Use this information to answer the following questions.

Required:

Question 1: What is the spread in percent?

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

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

Note: Please show basic calculation

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169232

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