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    Shares of stock must be sold if the offer price is $22 a share

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    A company needs to raise $21 million to expand its operations nationally. The company will sell new shares of common stock using a general cash offering. The underwriters charge an 8 percent spread. The administrative costs are estimated at $480,000. How many shares of stock must be sold if the offer price is $22 a share?

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    https://brainmass.com/business/accounting-for-corporations/shares-stock-must-sold-offer-price-share-388999

    Solution Preview

    The underwriter spread is 8%, so on $22 per share, underwriters will keep 22 X 8% ...

    Solution Summary

    The expert determines what is the shares of stock that must be sold if the offer price is $22 a share.

    $2.19