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Flotation costs The A Co. wants to raise $20 million to fund a new project. The company estimates that it will spend $500,000
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Answer #1

Amount required = 20,000,000

Issue cost = $500,000

Total amount required = $20,500,000

Proceeds per share = 25-25*7.5%

= $23.125

Number of shares required to be sold = 20,500,000/23.125

= 886,486.49 shares

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