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How many shares of common stock must be issued

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Problem - Bearskin Rugs needs $115 million to build a new distribution center. If it issues common stock to raise the funds, the issuance costs will be 8 percent of the total amount issued. If Bearskin can issue stock at $40 per share, how many shares of common stock must be issued so that it has $115 million after flotation costs to fund the construction of its distribution center?

Reference no: EM132697211

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