Calculating Flotation Costs the Educated Horses Corporation needs to raise $40 million to finance its expansion into

Question:

Calculating Flotation Costs the Educated Horses Corporation needs to raise $40 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise that needed funds. If the offer price is $35 per share and the company’s underwriters charge an 8 percent spread, how many shares need to be sold?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...