Question: Please answer both the questions. Show work! Question 2 Cochrane Corporation is considering an equity issue to finance a new refining plant. A total of

Please answer both the questions. Show work!

Please answer both the questions. Show work! Question 2 Cochrane Corporation

Question 2 Cochrane Corporation is considering an equity issue to finance a new refining plant. A total of $800 million is needed. If the direct cost of issuing the equity is 2.25%, how large does the issue have to be? Question 3 Fly Holdings Ltd has announced a rights offer to raise $15 million for a new operation in Coober Pedy. The share currently sells for $8.00 and there are 150 million shares outstanding. How many shares must be sold if the subscription price is $7.50

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