Determine how many shares of stock must be sold

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Reference no: EM13336087

Floral Bouquet needs to raise $21 million to expand its operations nationally. The company will sell new shares of common stock using a general cash offering. The underwriters charge an 8 percent spread. The administrative costs are estimated at $480,000. How many shares of stock must be sold if the offer price is $22 a share?

a. 954,545 shares

b. 958,778 shares

c. 976,364 shares

d. 1,061,265 shares

e. 1,072,367 shares

McDougal Entertainment is offering 75,000 shares of stock to the public in a general cash offer. The offer price is $36 a share and the underwriter's spread is 7.5 percent. The administrative costs are estimated at $350,000. How much will McDougal Entertainment receive from this stock offering?

a. $2,147,500

b. $2,350,000

c. $2,497,500

d. $2,550,500

e. $2,700,000

Reference no: EM13336087

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