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Are these numbers right? TBC, Inc. is seeking to raise $250 million in a seasoned equity offering, net of all fees. The firm's stock currently
Are these numbers right?
TBC, Inc. is seeking to raise $250 million in a seasoned equity offering, net of all fees. The firm's stock currently sells for $50.00 per share. The underwriters will require a fee of $1.75 per share, and indicate that the issue must be underpriced by 7%. In addition to the underwriter's fee, the firm will incur $1,000,000 in legal, administrative, and other costs. How many shares must TBC sell in order to raise the desired amount of capitalStep by Step Solution
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