The Huang Corporation needs to raise $72 million to finance its expansion into n

Question

The Huang Corporation needs to raise $72 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 $55per share and the company's underwriters charge a spread of 5 percent. If the SEC filing fee and associated administrative expenses of the offering are $700,000, how many shares need to be sold? (Do not round intermediate calculations and round your final answer to nearest whole number.Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

  Number of shares offered_______________________

The Huang Corporation needs to raise $72 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 $55per share and the company's underwriters charge a spread of 5 percent. If the SEC filing fee and associated administrative expenses of the offering are $700,000, how many shares need to be sold? (Do not round intermediate calculations and round your final answer to nearest whole number.Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

Explanation / Answer

Hello Pal,

First of all a very nice as well as intersting question from your side.

So now straight to the question, as asked above with all the information available from your side and from mine, the answer is as under:

After calculation of the above given information, the final number of shares that are required to be sold by the company to raise the needed funds will be 12068 shares.

That is all I can say from the above given information by you, hope have solved your problem to some extent.

Regards,

Lokesh.

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