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Husker’s Tuxedo’s, Inc. needs to raise $253 million to finance its plan for nationwide expansion. In...

Husker’s Tuxedo’s, Inc. needs to raise $253 million to finance its plan for nationwide expansion. In discussions with its investment bank, Husker’s learns that the bankers recommend an offer price (or gross price) of $30 per share and they will charge an underwriter’s spread of $1.90 per share.

Calculate the net proceeds per share to Husker’s from the sale of stock. (Round your answer to 2 decimal places.)

How many shares of stock will Husker’s need to sell in order to receive the $253 million needed? (Round your final answer to the nearest whole number.)

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Answer #1

Net Proceeds per share = Gross price - underwriter's charge

   = $ 30 - $ 1.90 = $ 28.10

No. of Shares to be sold by Husker’s Tuxedo’s, Inc in order to receive $253 million

   = $ 253 million / Net proceeds per share

   = $ 253,000,000 / $ 28.1

   = 9,003,559 shares

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