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.
How many new shares should they offer?
A. .57 M
B. 1 M
C. 1.57 M
D. 2 M
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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 should the offer price be for the new shares?
A. $25.65
B. $30.23
C. $37.77
D. $41.23
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
