Connect FINANCE hapter 20 Problems Question 2 (of 3) 2. 10.00 points value: The

Question

Connect FINANCE hapter 20 Problems Question 2 (of 3) 2. 10.00 points value: The St. Anger Corporation needs to raise $70 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. If the offer price is $30 per share and the company's underwriters charge a spread of 8 percent, how many shares need to be sold? (Enter your answer in shares, not millions of shares, e.g. 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, o.g, 32.) of shares off Hints ReferenceseBook &Resources; tint esc 0 F3 FS

Explanation / Answer

Answer is

(Fund to Be Raised)/(Share Price-SharePrice*Underwritng Spread %)

=70,000,000/(30-30*8%)

=2,536,232 No of Shares

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