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:
How many shares must be sold to achieve the desired net to the issuing firm?
- 581,526
- 654,545
- 659,091
- 705,406
Note: Show all workings.