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Northern Airlines is about to go public. It currently has aftertax earnings of $6,000,000 and 4,000,000 shares are owned by the present stockholders....

19. Northern Airlines is about to go public. It currently has aftertax earnings of $6,000,000 and 4,000,000 shares are owned by the present stockholders. The new public issue will represent 300,000 new shares. The new shares will be priced to the public at $18 per share with a 4 percent spread on the offering price. There will also be $100,000 in out-of-pocket costs to the corporation.

comupute the net proceeds to the Northern airlines

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