The Elkmont Corporation needs to raise $51.1 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. The offer price is $27 per share and the company’s underwriters charge a spread of 7.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,451,000. How many shares need to be sold? Note: Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.
The Elkmont Corporation needs to raise $51.1 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. The offer price is $27 per share and the company’s underwriters charge a spread of 7.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,451,000. How many shares need to be sold? Note: Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 2P
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The Elkmont Corporation needs to raise $51.1 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. The offer price is $27 per share and the company’s underwriters charge a spread of 7.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,451,000. How many shares need to be sold?
Note: Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.
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