Question
a) The Pre-IPO value of the firm is 60M$ and the Pre-IPO number of shares outstanding is 4 Million. Assume underwriting Spread or Flotation Cost
a) The Pre-IPO value of the firm is 60M$ and the Pre-IPO number of shares outstanding is 4 Million. Assume underwriting Spread or Flotation Cost is 5%. Determine the Post-IPO Value of the firm if gross proceeds are valued at 18 million dollars.
b) The Pre-IPO value of the firm is 60M$ and the Pre-IPO number of shares outstanding is 4 Million. Assume underwriting Spread or Flotation Cost is 5%. Determine the number of new shares issued (in millions) if gross proceeds are valued at 18 million dollars.
c) The Pre-IPO value of the firm is 60M$ and the Pre-IPO number of shares outstanding is 4 Million. Assume underwriting Spread or Flotation Cost is 5%. Determine offer price if gross proceeds are valued at 18 million dollars.
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Understanding Futures Markets
Authors: Robert Kolb, James Overdahl
6th Edition
1405134038, 9781405134033
