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ABC Airways is introducing a new fleet of planes and needs to raise $16.9188 million (net of underwriting cost) to fund an expansion. If the
ABC Airways is introducing a new fleet of planes and needs to raise $16.9188 million (net of underwriting cost) to fund an expansion. If the offer price is $3 and the underwriters require a 8 per cent spread on the transaction, how many shares does the company need to issue (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)
Select one:
a. 6.130
b. 19.989
c. 2.778
d. 2.760
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