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Yellow Yachts needs $190 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will
Yellow Yachts needs $190 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 5 percent. If Yellow can issue stock at $200 per share, how many shares of common stock must be issued so that it has 190 million after flotation costs to use for its planned growth? (LO 3-3)
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