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Persian Rugs needs $600 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) cost will
Persian Rugs needs $600 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) cost will be 4 percent. If Persian can issue stock at $125 per share, how many shares of common stock must be issued so that it has $600 million after flotation costs to use for its planned growth?
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