Wear Ever Is Expanding and Needs $6

Wear Ever is expanding and needs $6.8 million to help fund this growth. The company estimates it can sell new shares of stock for $43 a share. It also estimates it will cost an additional $352,000 for filing and legal fees related to the stock issue. The underwriters have agreed to a spread of 7.5 percent. How many shares of stock must be sold for the company to fund its expansion?

A) 170,376
B) 185,127
C) 179,811
D) 154,209
E) 61,806

Correct Answer:

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