Boat Emporium (BE) must raise $216 million. To do so, BE expects to issue new common stock. Be's investment banker will charge issuing costs equal to 10 percent of the total amount issued. If the stock can be issued for $160 per share, how many shares must BE sell to net $216 million after flotation costs. Round yout answer to the nearest whole number shares Show how much of the issue will consist of flotation costs and how much BE will receive after flotation costs are paid. Enter your answers in dollars. For example, an answer of $2 million should be entered as 2,000,000, not 2. Round your answers to the nearest dollar. Floation costs: $ Net proceeds: $
Boat Emporium (BE) must raise $216 million. To do so, BE expects to issue new common stock. Be's investment banker will charge issuing costs equal to 10 percent of the total amount issued. If the stock can be issued for $160 per share, how many shares must BE sell to net $216 million after flotation costs. Round yout answer to the nearest whole number shares Show how much of the issue will consist of flotation costs and how much BE will receive after flotation costs are paid. Enter your answers in dollars. For example, an answer of $2 million should be entered as 2,000,000, not 2. Round your answers to the nearest dollar. Floation costs: $ Net proceeds: $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Boat Emporium (BE) must raise $216 million. To do so, BE expects to issue new common stock. Be's investment banker will charge issuing costs equal to 10 percent of the total
amount issued. If the stock can be issued for $160 per share, how many shares must BE sell to net $216 million after flotation costs. Round yout answer to the nearest whole
number.
shares
Show how much of the issue will consist of flotation costs and how much BE will receive after flotation costs are paid. Enter your answers in dollars. For example, an answer of $2
million should be entered as 2,000,000, not 2. Round your answers to the nearest dollar.
Floation costs: $
Net proceeds: $
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