Issuing Stock Terrance and several partners own a dry cleaning business that operates as a closely...
Issuing Stock Terrance and several partners own a dry cleaning business that operates as a closely held corporation. They want to go public and sell stock, hoping to raise enough capital to expand the business.
If the initial offering of their stock sells for $29.50 per share,
how many shares of stock will they have to sell to raise $1 million?
Homework Answers
If the dry cleaning firm in the market has sold the first IPO at a price of $29.50 per share, then to raise one million in stock thye have to sell 1,000,000 / 29.50 = 33,898 shares in the market.
then the total value of the capital raised will be one million.
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