Posted: January 20th, 2016
Assuming that the market price of the firm's stock is $95, and flotation cost are 10% of the market price, how many shares would have to be issued? and what is the dollar size of the issue?
D. Butler Inc. needs to raise 14 million. Assuming that the market price of the firm’s stock is $95, and flotation cost are 10% of the market price, how many shares would have to be issued? and what is the dollar size of the issue?
| Instructions; Clearly label the calculations of the required ratios and solve using Excel. Use formulas to claculate the ratio and format cells to insert comma if there is more than 3 numbers. Round dollar amounts to the nearest whole dollar. |
| Summarize your analysis in a concise management statement not to exceed 100 words. |
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