Calculate the current EPS and PE ratio. How many shares will have to be sold to net the $4000000 that A need?

A company currently has net income of $3 million and 1 million common shares outstanding which sell for $20 per share. A has decided to issue new stock to raise $4,000,000 to expand its operations. A's investment banker will sell the new shares for $18 per share with a spread of 7%. There will be a $60,000 registration cost.
Please show calculations.

Come on...you've gotta do your own homework.

EPS is simply NI/shares out and PE is price/eps.

Divide the amount needed to be raised by the estimated price and add the 60,000 divided by the estimated price.

That's all the hint I'll give. Good luck.

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