Raybac is about to go public its present stockholders own


Problem

Raybac is about to go public. Its present stockholders own 450,000 shares. The new public issue will represent 830,000 shares. The shares will be priced at $30 to the public with a 16% spread. The out-of pocket costs will be $510,000. What are the net proceeds to the firm?

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Accounting Basics: Raybac is about to go public its present stockholders own
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