Answer: 179,811 shares
Explanation:
Given that,
Price of each share = $43
Amount needed for expansion = $6.8 million
Cost incurred for filing and legal fees = $352000
Underwriters have agreed to a spread of 7.5 percent
Now,
Net price after the underwriter spread = $43 × ( 1 - 7.5%)
= $39.775
Total capital needed = Fund needed for growth + Legal and filing fees
= $6,800,000 + $352,000
= $7,152,000
Number of shares sold = [tex]\frac{7152000}{39.775}[/tex]
= 179,811 shares
