Question
BearKat Enterprises wants to go public and desires to raise $20million. They find an investment banker that has a spread of 6.8%. Currently BearKat Enterprises
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BearKat Enterprises wants to go public and desires to raise $20million. They find an investment banker that has a spread of 6.8%.
Currently BearKat Enterprises has 2 million shares of stock and their estimated pre-IPO equity value is $77M.
What will be their post IPO equity value?
A. $44.8 M
B. $54.6 M
C. $88 M
D. $97 M
BearKat Enterprises wants to go public and desires to raise $20million. They find an investment banker that has a spread of 6.8%.
Currently BearKat Enterprises has 2 million shares of stock and their estimated pre-IPO equity value is $77M.
What percentage of the IPO value will be required by the new investors?
| A. | 22.12% | |
| B. | 33% | |
| C. | 35.12% | |
| D. | 97% |
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
