How much will scout corp net from each share

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Reference no: EM132672634

Scout Corp. needs to raise $50 million in an equity.

  • Scout Corp.'s current stock price is $40.
  • The underwriter, Morgan Stanley, advises underpricing the issue 5%.
  • The underwriters require a spread of $1 per share.

Problem a. How much will Scout Corp. net from each share?

Problem b. How many shares must the Scout Corp. sell to raise the needed $50 million?

Reference no: EM132672634

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