Multiple Choice
Wear Ever is expanding and needs $12.6 million to help fund this growth.The firm estimates it can sell new shares of stock for $35 a share.It also estimates it will cost an additional $340,000 for filing and legal fees related to the stock issue.The underwriters have agreed to a 7 percent spread.How many shares of stock must Wear Ever sell if it is going to have $12.6 million available for its expansion needs?
A) 370,376 shares
B) 385,127 shares
C) 397,543 shares
D) 454,209 shares
E) 461,806 shares
Correct Answer:
Verified
Correct Answer:
Verified
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