Question

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?

Answer 1

56,500 Shares

Step-by-step 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