Computing the number of shares to be issued to public

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Reference no: EM1312335

Computing the number of shares to be issued to public for capital requirements

The Blackmon Company needs to raise 50 million of new equity capital. Its common stock is currently selling for $50 per share. The investment bankers require and underwriting spread of 3 percent of the offering price. The company\'s legal, accounting and printing expenses, associated with the seasoned offering, are estimated to be $750,000. How many new shares must the company sell to net $50 million?

Reference no: EM1312335

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