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Firm commitment underwriting for new facility

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Reference no: EM132645501

MEC needs $30 million to finance a new facility to manufacture outdoor camping gears. The management has met with underwriters who feel that the firm could sell additional shares of stock at $19 a share with a 7 % underwriting spread. The estimated issue costs are $515,000. How many shares of stock will MEC need to sell if they choose firm commitment underwriting for their new facility?

Reference no: EM132645501

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