EBK CFIN
5th Edition
ISBN: 9781305888036
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 3, Problem 11PROB
Summary Introduction
BR needs $115 million for construction. To raise the needed funds, the issuance cost is 8% of the total issue value. The market price of each share is $40. Calculate the number of outstanding shares.
Equity financing is the process of raising equity capital by issuing shares to investors due to short-term need or long-term goal or for the future growth of the firm.
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