Solved: How many shares must be sold if out-of-pocket costs is given, Finance Basics

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How many shares must be sold if out-of-pocket costs is given

Firm X needs to net $7,800,000 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 $19 per share. Out-of-pocket costs are $100,000. How many shares must be sold?

a) 410,526
b) 359,091
c) 415,790

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Finance Basics: How many shares must be sold if out-of-pocket costs is given

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Solution Preview :

Prepared by a verified Expert

Finance Basics: How many shares must be sold if out-of-pocket costs is given

Reference No:- TGS0677043

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: How many shares must be sold if out-of-pocket costs is given

Reference No:- TGS0677043

Recent Questions Asked Finance Basics

Q : What is the most that the company would be willing

Q : Accounting break-even level of annual sales

Q : What costs would be capitalize

Q : Problem related to policing society

Q : How many shares must be sold if out-of-pocket costs is given

Q : The purchase and unfavorable direct materials price

Q : Determining personal liability for the firm debts

Q : Social setting to begin to detect patterns in human behavior

Q : Future value of investment cash flows six years

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