Owners of the Internet bargain site FROOGLE.com have decided to takte their company public by conducting an initial public offering of common stock. They have agreed with their investment banker to sell 3.3 million shares to investors at an offer price of $14 per share. The underwriting spread is 7 percent.
a. what is the net price that Froogle will receive for its shares?
b. How much money will froogle raise in the offering?
c. How much do FROOGLE investment bankers make on this transaction?