Calculate the number of shares


Question: The Blackmon Company needs to raise fifty million of new equity capital. Its common stock is currently selling for 50 dollar per share. The investment bankers require and underwriting spread of three percent of the offering cost. The company's legal, accounting and printing expenses, associated with the seasoned offering, are estimated to be 750,000 dollar. How many new shares must the company sell to net 50 million dollar?

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Finance Basics: Calculate the number of shares
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