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What is the gross amount the firm needs to raise

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Reference no: EM132408128

A company needs to raise $90 million. The company will sell new shares of equity via a general cash offering. If the offer price is $21 per share and the company's underwriters charge an 8% spread (as a percentage of firm's gross raised amount):

1. What is the gross amount the firm needs to raise?

2. How many shares need to be sold?

Reference no: EM132408128

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