Calculating Costs of Issuing Stock Blue Dragon,Inc

question 119

Multiple Choice

Calculating Costs of Issuing Stock Blue Dragon,Inc.,needs to raise $600 million to finance its plan for nationwide expansion.In discussions with its investment bank,Blue Dragon learns that the bankers recommend an offer price (or gross price) of $60 per share and they will charge an underwriter's spread of $3.00 per share.Calculate the net proceeds to Blue Dragon from the sale of stock.How many shares of stock will Blue Dragon need to sell in order to receive the $600 million they need?

• A)10,000,000
• B)10,526,316
• C)200,000,000
• D)600,000,000

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A chronic condition characterized by high blood sugar levels resulting from the body's inability to produce or effectively use insulin.

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