Question: Express Courier needs $ 1 4 1 million to support growth next year. After consulting with its investment banker, the company has determined that the
Express Courier needs $ million to support growth next year. After consulting with its investment banker, the company has determined that the costs to issue new stock to raise the needed funds will total percent of the issue price that is flotation costs will be percent. If Express Courier can issue stock at its current market price, which is $ per share, how many shares of common stock must the company issue so that it has $ million after flotation costs? What is the total dollar value of the shares issued? How much of the total dollar amount that will be issued consists of flotation costs?
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