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How much will jameson save on flotation costs

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Jameson Vineyards and Winery needs to raise $2 million in new equity. If the costs of the share issue are estimated to be 7 percent of gross proceeds, how large does the offering need to be? How much will Jameson pay in flotation costs? If the underwriters give a discount and only charge 5 percent of gross proceeds, how large does the offering need to be? How much will Jameson save on flotation costs?

Reference no: EM131402154

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