Question
A company wants to raise $100 million on a new stock issue. According to their investment banker, a sale of new stock will require 8%
A company wants to raise $100 million on a new stock issue. According to their investment banker, a sale of new stock will require 8% under pricing and a 7% spread. Assuming the companys stock price does not change from its current price of $100 per share, how many shares must the company sell and at what price?
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
