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Financial Decisions Chapters 5 and 6 Practice Problems 4. Scout Corp. needs to raise $50 million in an equity. Scout Corp.'s current stock price is

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Financial Decisions Chapters 5 and 6 Practice Problems 4. Scout Corp. needs to raise $50 million in an equity. Scout Corp.'s current stock price is $40. The underwriter, Morgan Stanley, advises underpricing the issue 5%. The underwriters require a spread of $1 per share. a. How much will Scout Corp.net from each share? b. How many shares must the Scout Corp. sell to raise the needed $50 million?! 5. Dynamic Drilling Corporation needs to raise $180 million in an equity issue. Its current stock price is $200.- The underwriter, Goldman Sachs, advises underpricing the issue 4%. The underwriters require a spread of $3 per share. a. How much will Dynamic Drilling Corporation net from each share?!! b. How many shares must the Dynamic Drilling Corporation sell?! c. What will Goldman Sachs earn on this issue

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