Posted: January 20th, 2016
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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