The Very Big Corporation needs to net $10,000,000 from the sale of common stock. Its investment dealer has informed the firm that the reatil price will be $25 per share, and the firm will receive $22 per share. Out-of-pocket costs are $300,000. How many shares must be sold?

The Very Big Corporation needs to net $10,000,000 from the sale of common stock. Its investment dealer has informed the firm that the reatil price will be $25 per share, and the firm will receive $22 per share. Out-of-pocket costs are $300,000. How many shares must be sold?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 2P

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