A company wants to raise $580 million in a new stock issue. Its investment banker...
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A company wants to raise $580 million in a new stock issue. Its investment banker indicates that the sale of new stock will require 9 percent underpricing and a 8 percent spread. (Hint: the underpricing is 9 percent of the current stock price, and the spread is 8 percent of the issue price.) a. Assuming the company's stock price does not change from its current price of $83 per share, what would be the issue price to the public after underpricing? How many shares would the company need to seli? Note: Round intermediate calculations to 2 decimal places. Round your answers to 2 decimal places. Enter "Number of shares" answer in mitilons. Answer is complete but not entirely correct. b. How much money will the investment banking syndicate earn on the sale? Note: Round intermediate calculations to 2 decimal places. Enter your answer in millions rounded to 2 decimal places
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