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The Brovek Company needs to raise $55 million in common stock. Underwriters have recommended an offer price of $11 per share. Their compensation will be
The Brovek Company needs to raise $55 million in common stock. Underwriters have recommended an offer price of $11 per share. Their compensation will be 7 percent of the offer price. The firm will also incur extra expenses in the amount of $400,000. How many shares must the firm sell in order to net $55 million after underwriting and flotation expenses?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
