New Education needs to raise $8.79 million to finance its expansion and has decided to sell new shares of equity via a general cash offering. The offer price is $31.40 per share, the underwriting spread is 7.32 percent, and the associated administrative expenses and fees are $517,600. How many shares need to be sold?

Question

Quizplus · Accepted Answer

To find the number of shares needed, calculate the net proceeds per share by subtracting the underwriting spread (7.32% of $31.40) from the offer price, then subtract the total administrative expenses from the total amount needed, and divide by the net proceeds per share.

New Education Needs to Raise $8