1.

A company is considering issuing new shares via a general cash offering. The new shares are expected to be sold for $300 each. Currently, the book value per share is $265. If underwriters charge a 3% spread, how many shares does the company need to sell to raise $87,300,000?

2.

the stock of an all-equity company currently sells for $55 per share. You own 120 shares of this company's stock and have a cost of borrowing of 8%. If you want to use homemade leverage to create a D/E ratio of 1.15, what amount should you borrow or lend to make this happen?