2.99 See Answer

Question: In Problem 5, if the SEC filing


In Problem 5, if the SEC filing fee and associated administrative expenses of the offering are $1.9 million, how many shares need to be sold?

Problem 5:
The Meadows Corporation needs to raise $75 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 $23 per share and the company’s underwriters charge a spread of 7 percent, how many shares need to be sold?


2.99

See Answer