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Number of shares to be sold

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The St. Anger Corporation needs to raise $25 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds.
a. If the offer price is $35 per share and he company's underwriters charge an 8% spread, how many shares need to be sold?
b. If the SEC filing fee and associated administrative expenses of the offering are $900,000, how many shares need to be sold?

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The solution explains how to calculate the number of shares that should be sold after accounting for underwriting spread and flotation cost

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a. If the offer price is $35 per share and he company's underwriters charge an 8% spread, how many shares need to be sold?

The offer price is $35 and there ...

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