Foster Enterprises' stock is trading for $41 per share and there currently 7 million shares outstanding. It would like to raise $110 million. If its underwriter charges 6% of gross proceeds, a. How many shares must it soll? b. If it expects the stock price to drop by 1% 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 117021277 shares. (Round to the nearest integer.) b. If it expects the stock price to drop by 1% upon announcement of the SEO, how many shares should it plan to sell? If the stock price drops by 1%, the total number of shares it must sell will be 2825636 shares. (Round to the nearest Integer.) 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? If all of the shares are primary shares and are sold to new investors, the existing ownership will drop by % (Round to two decimal places.) Etext pages Next