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Business, 17.12.2021 03:00 deanlmartin

The Beranek Company, whose stock price is now $30, needs to raise $17 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $27 per share because of signaling effects. The underwriters' compensation will be 3% of the issue price, so Beranek will net $26.19 per share. The firm will also incur expenses in the amount of $110,000. How many shares must the firm sell to net $17 million after underwriting and flotation expenses

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The Beranek Company, whose stock price is now $30, needs to raise $17 million in common stock. Under...

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