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Please help solve. First part of the question is correct. Problem 18-04 Calculating Costs of Issuing Stock (LG18-4) Don's Captain Morgan, Inc. needs to raise
Please help solve. First part of the question is correct.
Problem 18-04 Calculating Costs of Issuing Stock (LG18-4) Don's Captain Morgan, Inc. needs to raise $13.00 million to finance plant expansion. In discussions with its investment bank, Don's learns that the bankers recommend an offer price (or gross proceeds) of $20.90 per share and Don's will receive $18.65 per share. Calculate the underwriter's spread per share on the issue. (Round your answer to 2 decimal places.) Underwriter's spread $ 2.25 per share How many shares of stock will Don's need to sell in order to receive the $13.00 million it needs? (Round your whole number.) Number of shares sold sharesStep by Step Solution
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