Highlander Homes Stock Trades at $31 Per Share and There

Highlander Homes stock trades at $31 per share and there are 50 million shares outstanding. The management would like to raise $300 million in an SEO, and current investors would like to sell $100 million of their own stock. If the underwriter charges 6% of gross proceeds, how many shares must it sell in the total (primary and secondary) offering?

A) 13.04 million
B) 10.30 million
C) 13.73 million
D) 10.98 million

Correct Answer:

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