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Problem:

Firm X needs to net $12,800,000 from the sale of common stock. Its investment banker has informed the firm that the retail price will be $22 per share, and that the firm will receive $18.50 per share. Out-of-pocket and underwriting costs are $250,000.

Required:

Question: How many shares must be sold to achieve the desired net to the issuing firm?

a. $581,526

b. $654,545

c. $659,091

d. $705,406

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148138

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