Based on this given kindly answer question 1 to 5:

Wandou Inc. is a leading Chinese manufacturing company that provides a wide range of home, office and garden furniture. it wants to expand its business internationally. the proposed expansion would require the firm to raise about $15 million in new capital. Because Wandou currently has a debt ratio of 45% and because current shareholders already have all their personal wealth invested in the company, they would like to sell common stock to the public to raise the $15 million. However, the current shareholders want to retain voting control. the estimated pre - IPO value of equity of the company is about $65 million and the are 6.5 million of existing shares of stock held by current shareholders. The investment bank will charge a 7% spread.

1.To net $15 million, what is the total value of stocks that must be sold (approximately)? *

$13.950 million

$6.750 million

$15.850 million

$16.129 million

None of the above

2. What percentage of shares will the new investors require? *

20.16%

18.87%

17.89%

16.98%

None of the above

3. How many shares will the new investors require (approximately)? *

1,641,414 shares

1,416,276 shares

1,850,450 shares

1,960,753 shares

None of the above

4. What is the estimated offer price per share? *

$8.50

$9.75

$4.77

$9.01

None of the above

5. What is the total post-IPO value of equity? *

$80 million

$78.95 million

$86.23 million

$75 million

None of the above