A company wants to raise $100 million on a new stock issue. According to their i

Question

A company wants to raise $100 million on a new stock issue. According to their investment banker, a sale of new stock will require 8% under pricing and a 7% spread. Assuming the companys stock price does not change from its current price of $100 per share, how many shares must the company sell and at what price?

2.25 million shares.

1.69 million shares.

1.90 million shares.

3.0 million shares.

Is it A, B, C, or D?

2.25 million shares.

1.69 million shares.

1.90 million shares.

3.0 million shares.

Explanation / Answer

Ans;

1.69 million shares.

1.69 million shares.

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