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The Sullivan Co. needs to raise $66.9 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 $69 per share and the company's underwriters charge a spread of 9.5 percent. The SEC filing fee and associated administrative expenses of the offering are $469,000. How many shares need to be sold? (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.) Number of shares offered

The Sullivan Co. needs to raise $66.9 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 $69 per share and the company's underwriters charge a spread of 9.5 percent. The SEC filing fee and associated administrative expenses of the offering are $469,000. How many shares need to be sold? (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.) Number of shares offered

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter3: The Financial Environment: Markets, Institutions And Investment Banking
Section: Chapter Questions
Problem 16PROB
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3. Find the number of shares offered
The Sullivan Co, needs to raise $66.9 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 $69 per share and the company's underwriters charge a spread of 9.5 percent. The SEC filing fee and associated administrative expenses of the offering are $469,000. How many shares need to be sold? (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.) Number of shares offered < Prev 30 pe here to search
Transcribed Image Text:The Sullivan Co, needs to raise $66.9 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 $69 per share and the company's underwriters charge a spread of 9.5 percent. The SEC filing fee and associated administrative expenses of the offering are $469,000. How many shares need to be sold? (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.) Number of shares offered < Prev 30 pe here to search
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