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Foster Enterprises' stock is trading for $ 4 2 per share and there are currently 1 1 million shares outstanding. It would like to raise
Foster Enterprises' stock is trading for $ per share and there are currently million shares outstanding. It would like to raise $ million. If its underwriter charges of gross proceeds,
a How many shares must it sell?
b If it expects the stock price to drop by upon announcement of the SEO, how many shares should it plan to sell?
c If all of the shares are primary shares and are sold to new investors, what percentage reduction in ownership will all of the existing shareholders experience?
a How many shares must it sell?
The total number of shares it must sell will be shares. Round to the nearest integer.
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