A $400 Million, All-Equity-Financed Firm Raises Another $50 Million in Equity

question 51

Multiple Choice

A $400 million, all-equity-financed firm raises another $50 million in equity, paying $10 million in issuing fees. The value of the existing equity drops to $375 million. The total cost of
The issue is

• A)$25 million.
• B)$60 million.
• C)$50 million.
• D)$35 million.

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