answer LO3 3.

The Sullivan Co. needs to raise $78 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $31 per share and the company's underwriters charge a spread of 7 percent. How many shares need to be sold? (Do not round Intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.g., 1,234,567.) Offer Price = $31 Underwriter Spread = 7% Net Proceeds per share = $31* (1 - 7%) = $28.83 Amount required for expansion = $78,000,000 Number of shares to be sold = $78,000,000/$28.83 = 2,705,515 Comment > LO33. equity via a general cash offering to raise the needed funds. If the offer price is $31 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? Calculating Flotation Costs In the previous problem, if the SEC filing fee and associated administrative expenses of the offering are $1.425.000. how many shares need to be sold now? Calculating Flotation Costs The Sugarland Co. has just gone public. Under a firm commitment agreement, the company recebed $1757 LO3 4