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How many shares must Magenta sell? What is the formula for calculating this? Magenta Corporation wants to raise $51 million in a seasoned equity offering,
How many shares must Magenta sell? What is the formula for calculating this?
Magenta Corporation wants to raise $51 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $10 per share. The underwriters will require a spread of $0.5 per share, and indicate that the issue must be underpriced by 5 percent. In addition to the underwriter's fee, the firm will incur $2,000,000 in legal, accounting, and other costs. How many shares must Magenta sell? Note: Enter your answer in millions rounded to 3 decimal places
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