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?© BrainMass Inc. brainmass.com October 10, 2019, 2:41 am ad1c9bdddf
The underwriter spread is 8%, so on $22 per share, underwriters will keep 22 X 8% ...
The expert determines what is the shares of stock that must be sold if the offer price is $22 a share.