CFIN -STUDENT EDITION-ACCESS >CUSTOM<
6th Edition
ISBN: 9780357752951
Author: BESLEY
Publisher: CENGAGE C
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Chapter 3, Problem 18PROB
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BM needs $360 million to support growth. To raise the needed funds, the flotation cost is 4% of the total issue value and other expenses are $288,000. The market price of each share is $60. 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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