Calculating Costs of Issuing Stock Beach Stuff,Inc

question 21

Multiple Choice

Calculating Costs of Issuing Stock Beach Stuff,Inc.,needs to raise $10 million in new capital funding from a seasoned equity offering.In discussions with its investment bank,Beach Stuff learns that the bankers recommend a gross price of $20.00 per share and they will charge an underwriter's spread of $1.75 of the gross price.In addition,Beach Stuff must pay $1.5 million in legal and other administrative expenses for the seasoned stock offering.What is the number of shares of stock that Beach Stuff will need to sell to raise the $10 million?

• A)630,137
• B)575,000
• C)500,000
• D)547,946

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Definitions:

Drug Costs

The expenses associated with purchasing medications, which can vary based on factors like brand, country, and healthcare policies.

Price Negotiations

The process of discussing and agreeing on the cost of goods or services, often in the context of healthcare, to determine fair pricing.

Costly Technology

Technologies or equipment that are significantly expensive to acquire, maintain, or operate, often used in a health care context.

United States

A federal republic in North America comprising 50 states, a federal district, and various territories, characterized by its large size, diverse population, and significant global influence.