5. 5. Calculating flotation costs [LO 15.3] The Noarlunga Mining Company needs to raise $60 million to

Question:

5. 5.

Calculating flotation costs [LO 15.3] The Noarlunga Mining Company needs to raise $60 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $21 per share and the company’s underwriters charge a spread of 7 per cent, how many shares need to be sold?

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