Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. The estimated selling price is $30 per share with Dixon Corp. receiving $26.25 per share after the offering. Registration fees are estimated at $275,000.
Use this information to answer the following:
What is the spread in percent?
What are the total expenses for the issue?
If Dixon Corp. needs to generate $28 million, how many shares will have to be sold?