How many shares must the firm sell to net

Reference no: EM13181629

The Beranek Company, whose stock price is now $25, needs to raise 20 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $ 22 per share because of signaling effects. The underwriters' will be %5 of the issue price, so Beranek will net $20.90 per share. The firm will also incur expenses in the amount of $ 150,000. How many shares must the firm sell to net $ 20 million after underwriting and flotation expense?

Reference no: EM13181629

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