Homework Answers
| Computation of number of shares sold: | |||
| Let the number of shares sold be X | |||
| (Number of shares sold * Offer price) * (1 - Spread rate) | = | Total Funds | |
| (X * $31) * (1 - 0.07) | = | $ 7,80,00,000 | |
| (X * $31) | = | $ 78000000 / (1-0.07) | |
| (X * $31) | = | $ 8,38,70,967.74 | |
| X | = | $83870967.74 / $31 | |
| X | = | 27,05,515 | (rounded off) |
| Therefore, | |||
| Number of shares offered | = | 27,05,515 | |
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