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4 August, 18:56

Management of Crane, Inc., is planning to raise $1,045,250 in new equity through a private placement. If the sale price is $18.50 per share, how many shares does the company have to issue?

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  1. 4 August, 21:07
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    56,500 Shares

    Explanation:

    The computation of the number of shares to be issued is shown below:

    Number of shares to be issued = Amount raised through a private placement : Selling price per share

    = $1,045,250 : $18.50 per share

    = 56,500 Shares

    To find out the number of shares to be issued, basically, we divided the amount raised through a private placement by the selling price per share
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