Your firm is expanding and you need 13 million to help fund, Ask an Expert

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Your firm is expanding and you need $13 million to help fund this growth. You estimate that you can sell new shares of stock for $30 a share. You also estimate that it will cost you $280,000 for legal, accounting, and other costs related to the stock issue. The underwriters have agreed to a 6 percent spread.

Requirement:

Question: How many shares of stock must you sell if you are going to have $13 million available for your expansion needs?

417,610 shares
449,440 shares
460,993 shares
470,922 shares
416,107 shares

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149240

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