Offering to raise the needed funds


Problem:

ASP, Inc. needs to raise $32 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $45 per share and the company's underwriters charge a 7.5 percent spread, how many shares need to be sold?

Note: Please explain comprehensively and give step by step solution.

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Finance Basics: Offering to raise the needed funds
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