Raybac is about to go public its present stockholders own, Ask an Expert

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Raybac is about to go public. Its present stockholders own 500,000 shares. The new public issue will represent 700,000 shares. The shares will be priced at $25 to the public with a 5% spread. The out of pocket costs will be $450,000.

Required:

Question: What are the net proceeds to the firm.

a) $17,200,000

b) $18,250,000

c) $16,175,000

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149569

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