Amount of Shares Sold Assignment | Homework For You

Magenta Corporation wants to raise $51.6 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $12 per share. The underwriters will require a spread of $0.5 per share, and indicate that the issue must be underpriced by 5 percent. In addition to the underwriter’s fee, the firm will incur $2,600,000 in legal, accounting, and other costs. How many shares must Magenta sell? (Enter your answer in millions rounded to 3 decimal places.) 10 points Number of shares million . Get Finance homework help today