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A company wants to raise $ 4 4 0 million in a new stock issue. Its investment banker indicates that the sale of new stock
A company wants to raise $ million in a new stock issue. Its investment banker indicates that the sale of new stock will require percent underpricing and a percent spread. Hint: the underpricing is percent of the current stock price, and the spread is percent of the issue price.
a Assuming the company's stock price does not change from its current price of $ per share, what would be the issue price to the public after underpricing? How many shares would the company need to sell?
Note: Round intermediate calculations to decimal places. Round your answers to decimal places. Enter "Number of shares" answer in millions.
tableIssue price,,Number of shares,,million
b How much money will the investment banking syndicate earn on the sale?
Note: Round intermediate calculations to decimal places. Enter your answer in millions rounded to decimal places.
Investment bankers' revenue
million
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