Computation of number of shares to be used for requirement

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Computation of number of shares to be used for required amount of requirement.

McDougal Entertainment is offering 75,000 shares of stock to the public in a general cash offer. The offer price is $36 a share and the underwriter's spread is 7.5 percent. The administrative costs are estimated at $350,000. How much will McDougal Entertainment receive from this stock offering?

a) $2,147,500

b) $2,350,000

c) $2,497,500

d) $2,550,500

e) $2,700,000

Reference no: EM1311068

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