Sale of new shares
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The Norman Company needs to raise $50 million of new equity capital, Its common stock is currently selling for $50 per share. The investment bankers require an underwriting spread of 3 percent of the offering price. The company's legal, accounting, and printing expenses, associated with the seasoned offering are estimated to be $750,000. How many new shares must the company sell to net $50 million?
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Response presents the steps to compute new shares must the company sell.
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The Norman Company needs to raise $50 million of new equity capital, Its common stock is currently selling for $50 per share. The investment bankers require an ...
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