The St. Anger Corporation needs to raise $45 million to finance its expansion in

Question

The St. Anger Corporation needs to raise $45 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $31 per share and the company's underwriters charge a spread of 7 percent. If the SEC filing fee and associated administrative expenses of the offering are $1, 900, 000, how many shares need to be sold? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, i.e. 1, 234, 567.) Number of shares offered

Explanation / Answer

Amount to be raised for expansion = $45,000,000

Amount to be raised to cover SEC filing charges and administrative charges along with expansion funds = $45,000,000 + $1,900,000

= $46,900,000

Amount to be raised to cover underwriter charges in addition to above mentioned amount = $46,900,000 / (1

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.