Expected price per share


Saft Corporation wants to obtain $4 million in its first public issue of common stock. After the issuance, the total market value of stock is estimated at $10 million. At present, there are 120,000 closely held shares. (a) What is the amount of new shares that must be issued to obtain the $4 million? (b) After the stock issuance, what will be the expected price per share?

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Finance Basics: Expected price per share
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