Determining the shares of stock

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Chinese Importers wants to raise $58 million to expand its operations into South America. The company will sell new shares of common stock using a general cash offering. The underwriters charge a 7.8 percent spread, the administrative costs are $411,000, and the offer price is $35 per share. How many shares of stock must be sold if the firm is to raise the funds it desires?

  • 1,648,315 shares
  • 1,810,071 shares
  • 1,911,502 shares
  • 1,989,415 shares
  • 2,051,515 shares

Reference no: EM131106550

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