Norman internet service company nisc in interested in


Norman Internet service Company (NISC) in interested in selling common stock to raise capital for capacity expansion. The firm has consulted First Tulsa Company, a large underwriting firm, which believes that the stock can be sold for $50 per share. The underwriter's investigation found that its administrative costs wlil be 2.5% of the sale price and its selling costs wil be 2.0% of the sale price. If the underwriter requires a profit equal to 1% of the sale price, how much spread (in dollars) is necessary to cover the underwriter's costs and profit?

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