Highlander homes stock trades at 30 per share and there are, Ask an Expert

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Highlander Homes stock trades at $30 per share and there are 50 million shares outstanding. The management would like to raise $300 million in an SEO. If the underwriter charges 2% of gross proceeds, all other cost is $10 million and all the shares are primary shares sold to new investors, then

1. What percentage of the company will be owned by the new investors (ignore all other cost)?

2. What percentage of the company will be owned by the new investors (including all other cost)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92055042

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