Norman Internet Service Company (NISC) is interested in selling common stocks to raise capital for capacity expansion. The firm has consulted First Tulsa Company, a large underwriting firm, which believes that stock can be sold for $50 per share. The underwriter’s investigation found that its administrative cost will be 2.5% of the sale price and its selling costs will be 2.0% of the sale price. If the underwriter requires a profit equal to 1% of the sale price, how much spread (in dollars) is necessary to cover the underwriter’s cost and profit?

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Norman Internet Service Company (NISC) is interested in selling common stocks to raise capital for capacity expansion. The firm has consulted First Tulsa Company, a large underwriting firm, which believes that stock can be sold for $50 per share. The underwriter’s investigation found that its administrative cost will be 2.5% of the sale price and its selling costs will be 2.0% of the sale price. If the underwriter requires a profit equal to 1% of the sale price, how much spread (in dollars) is necessary to cover the underwriter’s cost and profit?

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At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

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