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The Yellow Corp., whose stock price is now $ 2 5 , needs to raise $ 2 0 million in common stock, Underwriters have informed
The Yellow Corp., whose stock price is now $ needs to raise $ million in common stock, Underwriters have informed the firms management that they must price the new issue to the public at $ per share because of signaling effects. The underwriters compensation will be of the issue price, so the company will net $ per share. The firm will also incur expenses in the amount of $ How many shares must the firm sell to net $ million after underwriting and floatation expenses?
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