The firm needs to raise $10 million. Assuming that flotation costs are expected to be $15 per share, and that the market price of the stock is $120, how many shares would have to be issued? What is the dollar size of the issue?© BrainMass Inc. brainmass.com December 15, 2020, 6:16 pm ad1c9bdddf
Answer (see attachment).
amount needed 1000000
flotation cost 15 per ...
The solution determines the flotation cost, finding how many shares will be issues and the dollar amount of the issue.