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Victory Vineyards (VV) must raise $370 million. To do so, VV expects to issue new common stock. VVs Investment banker will charge issuing costs equal
Victory Vineyards (VV) must raise $370 million. To do so, VV expects to issue new common stock. VVs Investment banker will charge issuing costs equal to 7.5 percent of the total amount issued. If the stock can be issued for $80 per share, how many shares must VV sell to net $370 million after flotation costs. Show how much of the issue will consist of flotation costs and how much VV will receive after the flotation costs are paid.
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