Raise external funds to finance its new project

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Reference no: EM131553642

A firm needs to raise external funds to finance its new project. It needs to raise $13 million in new equity. Its investment bankers will charge 10% of the issue as a fee; in other words, the stock will be underpriced by 10%. How much will the firm need to issue in order to net $13 million? (In other words, how much must the amount issued be so that when 10% is taken out as a transaction cost, the firm will be left with $13 million to use on its new project?) Round answer to two decimal places. Do NOT include dollar sign or term "millions." Ex: If answer is $47.12 million write 47.12.

Reference no: EM131553642

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