Question
Boat Emporium (BE) must raise $198 million. To do so, BE expects to issue new common stock. BE's investment banker will charge issuing costs equal
Boat Emporium (BE) must raise $198 million. To do so, BE expects to issue new common stock. BE's investment banker will charge issuing costs equal to 12 percent of the total amount issued. If the stock can be issued for $100 per share, how many shares must BE sell to net $198 million after flotation costs. Round yout answer to the nearest whole number.
shares
Show how much of the issue will consist of flotation costs and how much BE will receive after flotation costs are paid. Enter your answers in dollars. For example, an answer of $2 million should be entered as 2,000,000, not 2. Round your answers to the nearest dollar.
Floation costs: $
Net proceeds: $
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