U 3 needs $192 million to support growth. To raise the needed funds, the flotation cost is 8% of the total issue value and other expenses are $280,000. The market price of each share is $25. 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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Chapter 3, Problem 20PROB

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U3 needs $192 million to support growth. To raise the needed funds, the flotation cost is 8% of the total issue value and other expenses are $280,000. The market price of each share is $25. 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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