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Question
Persian Rugs needs $600 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $125 per share, how many shares of common stock must be issued so that it has $600 million after flotation costs to use for its planned growth?
a. 5,000,000
b. 4,800,000
c. 4,992,000
d. 4,512,000
e. 4,000,000
Answer
This answer is hidden. It contains 1 characters.
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