Webjet Ltd. needs $156.4 million of new equity capital for an investment. Its common stock is currently selling for $5 per share. New shares can be sold at this price. The investment bankers require an underwriting spread of 4% of the offering price. The company's legal, accounting, and printing expenses, associated with the secondary offering, are estimated to be $2 million. How many new shares must the company sell to net $156.4 million?

Answer rating: 100% (QA)

To calculate the number of new shares that Webjet Ltd needs to sell in order to raise 1564 million ... View the full answer