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Persian Rugs needs $264 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $50 per share, how many shares of common stock must be issued so it has $264 million after flotation costs to use for its planned growth? Round your answer to the nearest whole number. shares

Persian Rugs needs $264 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $50 per share, how many shares of common stock must be issued so it has $264 million after flotation costs to use for its planned growth? Round your answer to the nearest whole number. shares

Essentials Of Investments
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
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00 eBook Persian Rugs needs $264 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $50 per share, how many shares of common stock must be issued so it has $264 million after flotation costs to use for its planned growth? Round your answer to the nearest whole number. shares
Transcribed Image Text:00 eBook Persian Rugs needs $264 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $50 per share, how many shares of common stock must be issued so it has $264 million after flotation costs to use for its planned growth? Round your answer to the nearest whole number. shares
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