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ABC Airways is introducing a new fleet of planes and needs to raise $13.9104 million (net...

ABC Airways is introducing a new fleet of planes and needs to raise $13.9104 million (net of underwriting cost) to fund an expansion. If the offer price is $2 and the underwriters require a 8 per cent spread on the transaction, how many shares does the company need to issue (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)

Select one:

a. 7.560

b. 16.435

c. 1.852

d. 1.840

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