Sea Grove Beach Company
Sea Grove Beach Company needs to raise $30 million of new equity capital. Its common stock is currently selling for $44 per share. The investment bankers require an underwriting spread of 7 percent of the offering price, and the company's legal, accounting, and printing expenses associated with the seasoned offering are estimated to be $500,000.
-Refer to Sea Grove Beach Company.How many new shares must the company sell to net $30 million?

Question

Quizplus · Accepted Answer

= $30,000,000 = X * .93 * $44 - $500,000
X = 745,357