Question
Young Corporation stock currently sells for $30 per share. There are 1 million shares currently outstanding. The company announces plans to raise $4 million by
Young Corporation stock currently sells for $30 per share. There are 1 million shares currently outstanding. The company announces plans to raise $4 million by offering shares to the public at a price of $30 per share.
a.If the underwriting spread is 4%, how many shares will the company need to issue in order to be left with net proceeds (before other administrative costs)of $4 million ?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
