A company needs to raise $20 million of new equity capital. Its commin stock is currently selling
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Question:
A company needs to raise $20 million of new equity capital. Its commin stock is currently selling for $42 per share. The investment bankers require an underwriting spread of 7% of the offering price, and the companys legal, accounting, and printing expenses associated with the seasoned offering are estimated to be $450,000. How many new shares must the company sell to net $20 million?
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