Question
A company needs to raise $90 million. The company will sell new shares of equity via a general cash offering. If the offer price is
A company needs to raise $90 million. The company will sell new shares of equity via a general cash offering. If the offer price is $21 per share and the company's underwriters charge an 8% spread (as a percentage of firm's gross raised amount):
1. What is the gross amount the firm needs to raise?
2.How many shares need to be sold?
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
