The Bread Basket Needs to Raise $11

The Bread Basket needs to raise $11.7 million to expand its operations nationally.The company will sell new shares of common stock using a general cash offering.The underwriters spread is 8.15 percent spread,the administrative costs are $485,000,and the offer price is $22 per share.How many shares of stock must be sold for the company to receive the total funds it desires?

A) 603,009 shares
B) 638,311 shares
C) 663,022 shares
D) 814,141 shares
E) 833,333 shares

Correct Answer:

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