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Magenta Corporation wants to raise $51.7 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $13 per share. The underwriters will require a spread of $0.4 per share, and indicate that the issue must be underpriced by 6 percent. In addition to the underwriter's fee, the firm will incur $2,700,000 in legal, accounting, and other costs. How many shares must Magenta sell? (Enter your answer in millions rounded to 3 decimal places.) Number of shares million

Magenta Corporation wants to raise $51.7 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $13 per share. The underwriters will require a spread of $0.4 per share, and indicate that the issue must be underpriced by 6 percent. In addition to the underwriter's fee, the firm will incur $2,700,000 in legal, accounting, and other costs. How many shares must Magenta sell? (Enter your answer in millions rounded to 3 decimal places.) Number of shares million

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Magenta Corporation wants to raise $51.7 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $13 per share. The underwriters will require a spread of $0.4 per share, and indicate that the issue must be underpriced by 6 percent. In addition to the underwriter's fee, the firm will incur $2,700,000 in legal, accounting, and other costs. How many shares must Magenta sell? (Enter your answer in millions rounded to 3 decimal places.) Number of shares million
Transcribed Image Text:Magenta Corporation wants to raise $51.7 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $13 per share. The underwriters will require a spread of $0.4 per share, and indicate that the issue must be underpriced by 6 percent. In addition to the underwriter's fee, the firm will incur $2,700,000 in legal, accounting, and other costs. How many shares must Magenta sell? (Enter your answer in millions rounded to 3 decimal places.) Number of shares million
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