Highlander Homes stock trades at $30 per share and there are 50 million shares outstanding. The management would like to issue a total of 10 million (primary and secondary) shares in an SEO. If the underwriter charges 5% of gross proceeds, 25% of the shares are primary shares sold to new investors, and 75% of the shares are secondary shares sold to new investors, what percentage of the company will be owned by the new investors?

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D) New shares 11ea84dc_f523_d8fc_9a63_cddcf7bc2c51_TB1316_00_TB1316_00 new shares. Percentage of company owned by new shareholders = 10 million / (50 million + 2.5 million) = 19.05%

Highlander Homes Stock Trades at $30 Per Share and There