b. What is the total amount the firm will raise through the IPO for the purpose of expanding the business? [2 marks c. What is the total number of shares that will be issued for the purposes of the IPO? (3 marks! d. What percentage of the firm will you own after the IPO? [3 marks e. After going public in 2019 EloMax Foc identified a strange pattern in stock price in June 2019. The stock price of Elo Max Inc declined following the offering. The CEO is enraged and does not understand this happening. At breakfast this moming, the CEO engages you in your capacity as a financial analyst for the firm and wants to know what reasons could have possibly accounted for the share price decline. Briefly state your response to the CEO. 15 marks! (Total: 15 marks) QUESTION 2 Adonai Estates Limited, established 10 years ago, is a listed medium size real estate development company in Ghana, its capital structure is made up of the following components, 10,000 bomds face value of Ghs1,000. 2 million shares of 7% preference stocks with face value Ghs 100 and 5 million shares of common stocks. Yield to maturity of bonds with similar characteristics is 7% The preference shares are selling for Ghs60 a share. The common stock has a beta of 1.5 and sells Ghs50 a share. Risk free rate is 3% and market return is 15%. Tax rate is 16.5% Required: What is Adonai Estate Limited weighted average cost of capital? |15 marks] Additional information 1. All answers must be typed in MS word. Double line spacing with a Font size of 12 and Times New Roman Font style