Calculate the net proceeds to blue dragon


Problem:

Blue Dragon, Inc., needs to raise $600 million to finance its plan for nationwide expansion. In discussions with its investment bank, Blue Dragon learns that the bankers recommend an offer price (or gross price) of $60 per share and they will charge an underwriter's spread of $3.00 per share.

Requirement:

Question: Calculate the net proceeds to Blue Dragon from the sale of stock. How many shares of stock will Blue Dragon need to sell in order to receive the $600 million they need?

Note: Show step by step solution and I also want complete calulation.

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Accounting Basics: Calculate the net proceeds to blue dragon
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