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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Business

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8 April, 10:32

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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Miles Higgins · Answer 1

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