Homework SourseMountaintop Market is offering 60000 shares of stock to the
Mountaintop Market is offering 60,000 shares of stock to the public in a general cash offer. The offer price is $30 a share and the underwriter\'s spread is 9 percent. The administrative costs are estimated at $310,000. How much will Hilltop Market receive from this stock offering assuming the issue is completely sold?
a.$1,370,800
b.$1,328,000
c.$1,490,000
d.$1,638,000
e.$1,800,000
Solution
Option B is correct answerx
| Number of shares | 60,000 |
| Price per share | 30 |
| Total received | 1,800,000 |
| 9% underwriter fee | 162,000 |
| Administrative charges | 310,000 |
| Total received | 1,328,000 |
