A company needs $3,000,000 for expansion. They decide to raise the capital by issuing new shares. How many shares does the company need to sell to raise the amount, if the last share issue was at a price of $1 each and the current market price for the company's shares is $1.50 per share?

Question

Quizplus · Accepted Answer

To raise $3,000,000 at a share price of $1.50, the company needs to sell $3,000,000 / $1.50 = 2,000,000 shares.

A Company Needs $3,000,000 for Expansion