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The Sullivan Co. needs to raise $65.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $58 per share and the company's underwriters charge a spread of 8 percent. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offered

The Sullivan Co. needs to raise $65.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $58 per share and the company's underwriters charge a spread of 8 percent. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offered

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Find the number of shares offered
The Sullivan Co. needs to raise $65.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $58 per share and the company's underwriters charge a spread of 8 percent. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offered Prev 2 of e here to search
Transcribed Image Text:The Sullivan Co. needs to raise $65.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $58 per share and the company's underwriters charge a spread of 8 percent. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offered Prev 2 of e here to search
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