Weegy: Stock price is $95, so the flotation Costs are $9.50 (10% x $95)
the firm receives $95 - 9.50 = $85.50 per share
Therefore, to raise $14 million, [ the firm should issue $14,000,000 / $85.50 = 163,743 shares.
The dollar size of the issue = $95 x 163,743 = $15,555,585
Flotation cost is the cost that D. Butler would incur when ever it makes any offering of stocks or bonds. The flotation cost includes the cost of printing the formal ... (More)