Your company needs to raise 5m$ for international expansion. The decision was The made to fund the project via new share issue. The share price is 24$. The underwriter agreed to take 7% commission on the issue and other indirect costs not included in the spread amount to $56,000.

• compute the net $ amount you will receive per share sold.

• How many additional shares will you have to issue to cover for indirect expenses?

• Compute the total amount of shares that need to be sold at 24$.

 

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To answer these questions we should look at them one at a time 1 Compute the net amount you will rec... View the full answer