What is the dollar size of the issue
Question:
Firm needs to raise $10 million. Flotation costs are expected to be $15 per share and market price of stock is $120. How many shares would have to be issued? What is the dollar size of the issue?
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How many shares would have to be issued? What is the dollar size of the issue?
e said one type of leverage affects both EBIT and EPS. Then he said the other type of leverage affects only EPS.
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