Importersexporters inc wants to underwrite a stock issue


Importers/Exporters Inc. wants to underwrite a stock issue for the purchase of $21 million of new equipment. Management estimates the issue will cost the firm $320,000 for accounting, legal, and other costs. The underwriting spread is 7.5% and the issue price is $22/share. How many shares of stock must be sold to receive sufficient funds to purchase all the equipment?

908,010

1,021,121

1,047,666

1,147,666

1,151,333

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Financial Management: Importersexporters inc wants to underwrite a stock issue
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