A privately held company has an estimated value of equity equal to $100 million. The founders own

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A privately held company has an estimated value of equity equal to

$100 million. The founders own 10 million shares. If the company goes public and sells 1 million shares with no underwriting costs, how much should the per share offer price be? ($10.00) If instead the underwriting spread is 7%, what should the offer price be?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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