Explain how many shares of stock must be sold for the bread

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Q. The Bread Basket needs to raise $38 million to expand its operations nationally. The corporation will sell new shares of common stock using a general cash offering. The underwriters charge a 7.65 percent spread, the administrative costs are $395,000 and the offer price is $26 per share. Explain how many shares of stock must be sold for The Bread Basket to receive the total funds it desires?

Reference no: EM1385250

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