How many shares must American issue in order

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Question - American Airlines decides it needs to raise $90 million of cash liquidity to last through the cycle of the pandemic downturn. If the company issues new common shares to raise the funds, the flotation costs will be 6% to the underwriter and there are an estimated $1 million of out-of-pocket expenses for lawyers, accountants, printing, etc. The underwriter is confident the shares can be sold for $50 per share. How many shares must American issue in order to have $90 million of proceeds after all of its expenses and floatation costs (round up your solution to whole number of shares)?

Reference no: EM133113485

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