Question: Problem 15-3 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $66.7 million to finance its expansion into new markets. The company will

Problem 15-3 Calculating Flotation Costs [LO 3]

The Sullivan Co. needs to raise $66.7 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. The offer price is $67 per share and the companys underwriters charge a spread of 8.5 percent. The SEC filing fee and associated administrative expenses of the offering are $467,000. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Problem 15-2 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $66.7 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-3 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $65.4 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-3 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $65.7 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-3 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $66.4 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-2 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $65.1 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-2 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $66.6 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-2 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $65.3 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 15-2 Calculating Flotation Costs [LO 3] The Sullivan Co. needs to raise $66.2 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash...

Problem 1 5 - 3 Calculating Flotation Costs [ LO 3 ] The Meadows Corporation needs to raise $ 6 5 . 6 million to finance its expansion into new markets. The company will sell new shares of equity via...

er 15 Assignment 6 Propiem 15-3 Caiculating Flotation Costs [LU 3] The Sullivan Co. needs to raise $65.7 million to finance its expansion into new markets. The company will sell new shares of equity...

QUESTION 6 A bank's duty to honor its customers checks is absolute. True False QUESTION 7 Certified checks are instruments that have been accepted for payment by the institutions on which they are...

Determine the normal force, the shear force, and the bending moment, 1) at the midpoint, 2) at the root of the oversimplified wing model of the following airliner. Assume that the engine create no...

Which of the following statements regarding payments made on installments notes is TRUE? Muliple Choice The amount of interest and princlpal appled in each payment remains the same. Each payment made...

8:37 * N. 80% i ... OBJECTIVES: Create relationships Create a Pivot Table from Related Tables Create a PivotChart Modify the PivotChart The major section in this chapter :ontinuation is: Data...

2-26. COMMUNICATION ETIQUETTE: ONLINE ETIQUETTE; MEDIA SKILLS: USING SOCIAL MEDIA [LO6] Many celebrities are successful brands managing their careers and businesses can learn from successful...

2-27. NONVERBAL COMMUNICATION: SELFASSESSMENT [LO-5] What type of persona do you want to have in the workplace? What nonverbal signals can you send to create this persona? In meetings, others form an...

2-21. NONVERBAL COMMUNICATION: ANALYZING NONVERBAL SIGNALS [LO-5] Select a piece of mail, from any company, that you received at work or at home. Analyze its appearance. What nonverbal messages does...