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    Calculating number of shares and issue size

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    Your 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?

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    Flotation cost per share=$15
    Market price per share=$120
    Net amount ...

    Solution Summary

    Solution calculates the number of shares to be issued and dollar size of the issue.