Under writers have informed the firms management

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Reference no: EM131063093

The beranek company whose stock price in now $25 need to raise $20 million in common stock. Under writers have informed the firms management that they must price the new issue to the public at $22 per share because of signaling effects. The underwriters compensation will be 5% of the issue price so Beanek will net $20.90 per shares. 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 floatation expenses?

Reference no: EM131063093

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