Question
MEC needs $30 million to finance a new facility to manufacture outdoor camping gears. The management has met with underwriters who feel that the firm
MEC needs $30 million to finance a new facility to manufacture outdoor camping gears. The management has met with underwriters who feel that the firm could sell additional shares of stock at $19 a share with a 7 % underwriting spread. The estimated issue costs are $515,000. How many shares of stock will MEC need to sell if they choose firm commitment underwriting for their new facility?
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Accounting Principles Part 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306791, 978-1118306796
