EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 3, Problem 9PROB
Summary Introduction
EC needs $141 million to support future growth. To raise the needed funds, EC must pay its investment banker 6% of the issue's total value. The market price of each share is $80. 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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