In Problem 5, if the SEC filing fee and associated administrative expenses of the offering are $1.9

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In Problem 5, if the SEC filing fee and associated administrative expenses of the offering are $1.9 million, how many shares need to be sold?


Problem 5

The Meadows Corporation needs to raise $75 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $23 per share and the company’s underwriters charge a spread of 7 percent, how many shares need to be sold?

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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