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.