Calculating Flotation Costs The St. Anger Corporation needs to raise $25 million to finance its expansion into

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Calculating Flotation Costs The St. Anger Corporation needs to raise $25 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 $35 per share and the company’s underwriters charge an 8 percent spread, how many shares need to be sold? LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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