2) Company R needs to raise an amount of $45,000,000. Hence, it planned to sell new shares of common stock at a price of $15.00 per share. Underwriter's charge on thisis 5.00%. Offering expenses are $489,000. How many shares should be sold by the Company?3,157,8953.032.6003.192.2113.000.000

To determine how many shares Company R needs to sell to raise $45,000,000, we need to consider the…

Answered: Company R needs to raise an amount of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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Company R needs to raise an amount of $45,000,000. Hence, it planned to sell new shares of common stock at a price of $15.00 per share. Underwriter's charge on this is 5.00%. Offering expenses are $489,000. How many shares should be sold by the Company? 3,157,895 3.032.600 3.192.211 3.000.000