Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed...

60.1K

Verified Solution

Question

Finance

Winston Sporting Goods is considering a public offering ofcommon stock. Its investment banker has informed the company thatthe retail price will be $17.80 per share for 660,000 shares. Thecompany will receive $16.40 per share and will incur $220,000 inregistration, accounting, and printing fees.
a-1. What is the spread on this issue inpercentage terms? (Do not round intermediate calculations.Enter your answer as a percent rounded to 2 decimal places.)


a-2. What are the total expenses of the issueas a percentage of total value (at retail)? (Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.)


b. If the firm wanted to net $14.54 millionfrom this issue, how many shares must be sold? (Do notround intermediate calculations. Enter your answer rounded to thenearest whole number.)

Answer & Explanation Solved by verified expert

4.4 Ratings (896 Votes)

a1Spread on this issue in percentage terms Spread per share Retail price per share Selling price per share 1780 per share 1640 per share 140 per share Therefore the Spread on this issue in percentage See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Winston Sporting Goods is considering a public offering ofcommon stock. Its investment banker has informed the company thatthe retail price will be $17.80 per share for 660,000 shares. Thecompany will receive $16.40 per share and will incur $220,000 inregistration, accounting, and printing fees.a-1. What is the spread on this issue inpercentage terms? (Do not round intermediate calculations.Enter your answer as a percent rounded to 2 decimal places.) a-2. What are the total expenses of the issueas a percentage of total value (at retail)? (Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.) b. If the firm wanted to net $14.54 millionfrom this issue, how many shares must be sold? (Do notround intermediate calculations. Enter your answer rounded to thenearest whole number.)