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Future Technology wants to raise $15 million to purchase equipment by issuing new securities. Management estimates the issue will cost the firm $926,250 for accounting,
Future Technology wants to raise $15 million to purchase equipment by issuing new securities. Management estimates the issue will cost the firm $926,250 for accounting, legal, and other costs. The underwriting spread is 6 percent and the issue price is $25 per share. How many shares of stock must be sold if the firm is to have sufficient funds remaining after costs to purchase all of the desired equipment?
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