Question

The value of 850,000 shares of CoMark stock is $1,750,000. The underwriting commission is 10%. The total of other selling expenses is $521,464. What are the net proceeds from the sale of the stock?

Answer 1

Given:
value of 850,000 shares is 1,750,000
underwriting commission is 10%
selling expenses 521,464.00

1,750,000 * 10% = 175,000 commission
175,000 + 521,464 = 696,464

1,750,000 - 696,464 = 1,053,536 net proceeds from the sale of stocks.