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Part $1$

$($Calculating flotation$$ costs$)$ The

Splendora Internet Radio CompanySplendora$$Internet$$Radio$$Company

Internet Radio Company was started in $2015$ to provide a personalized radio listening experience over your computer or iPhone and is privately owned.$$ However, its success could easily lead its owners to take the company public with the sale of common stock to the public. When companies sell common stock for the first$$ time, the flotation cost can be very high. For$$ example, if

SplendoraSplendora

needs

$ $71$

million to finance an acquisition and sells shares to the$$ public, it will have to pay an investment banker

$13$

percent of the offering size. How much stock will the company have to sell to realize net proceeds of

$$$$71$

$$million$?($Calculating flotation costs$)$ The Splendora Intornet Radio Company Internet Radio Company was started in $2015$ to provide a personalzed radio listening experience over your computer or iPhone and is pervately owned. However, its success could easily load its owners to take the company publio with the salio of common slock to the public. When companies sell common slock for the first time, the flotation cost can be very high. For example, if Splendora needs $\backslash (\backslash$$ $71\backslash )$ milion to finance an acquistion and selts shares to the public, it will have to pay an investment banker $13$ percent of the offering size. How much stock will the company have to sell to realize net procoeds of $\backslash (\backslash$$ $71\backslash )$ milion?

The flotation cost afjusted inital outlay is $\backslash (\backslash$$ $\backslash )($Round io the nearest dollas.$)$