Dons captain morgan needs to raise 1390 million to finance


Don's Captain Morgan, needs to raise $13.90 million to finance plant expansion. In discussions with its investment bank, Don's learns that the bankers recommend an offer price (or gross proceeds) of $21.80 per share and Don's will receive $19.25 per share. Calculate the underwriter's spread per share on the issue. How many shares of stock will Don's need to sell in order to receive the $13.90 million it needs? Please show work for both questions.

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Financial Management: Dons captain morgan needs to raise 1390 million to finance
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