How many new shares must the company sell

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The Bloomington Company needs to raise $20 million of new equity capital. Its common stock is currently selling for $42 per share. The investment bankers require an underwriting spread of 7 percent of the offering price.

The company's legal, accounting, and printing expenses associated with the seasoned offering are estimated to be $450,000. How many new shares must the company sell to net $20 million?

Reference no: EM131328382

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