Persian Rugs needs $264 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $50 per share, how many shares of common stock must be issued so it has $264 million after flotation costs to use for its planned growth? Round your answer to the nearest whole number. shares

Persian Rugs needs $264 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $50 per share, how many shares of common stock must be issued so it has $264 million after flotation costs to use for its planned growth? Round your answer to the nearest whole number. shares

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 12PROB

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