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Flotation Costs and Issue Size: Shares to Be Issued

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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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The solution determines how many shares would have to be issues and what is the dollar size of the issue.

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