Question: Casual Corners focus in the underwriting of small companies. The terms of a recent offering were as follows:
Number of shares = 2 million
Offering price = $ 25 per share
Net proceeds = $45 million
Casual Corners operating cost associated with the offering were 500,000 dollars. Calculate the company gains on the offer if immediately after the offer began the secondary market value of each share was as follows:
[A] $23 per share
[B] $25 per share
[C] $28 per share