If the offer price is 16 per share and the companys


The Huang Corporation needs to raise $85 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $16 per share and the company's underwriters charge a spread of 8 percent, how many shares need to be sold?

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Finance Basics: If the offer price is 16 per share and the companys
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