Given the following case, answer questions 10 to 14 below:

10. To net $20.5 million, what is the total value of stocks that must be sold (approximately)? *

a. $7.175 million b. $19.065 million c. $20.124 million d. $22.043 million e. None of the above

11. What percentage of shares will the new investors require?

a. 20.25% b. 21.25% c. 23.83% d. 26.52% e. None of the above

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

a. 1,214,065 shares b. 1,352,520 shares c. 1,369,740 shares d. 1,407,859 shares e. None of the above

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

a. $13.54 b. $15.91 c. $15.70 d. $15.66 e. None of the above

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

a. $80.890 million b. $85.140 million c. $91.065 million d. $92.500 million e. None of the above

Armada Inc. is a leading Lebanese retail company that operates franchise concepts in fashion and accessories. It wants to expand its business internationally. The proposed expansion would require the firm to raise about $20.5 million in new capital. Because Armada currently has a debt ratio of 35% 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 $20.5 million. However, the current shareholders want to retain voting control. The estimated pre-IPO value of equity of the company is about 72 million and there are 4.5 million of existing shares of stock held by current shareholders. The investment bank will charge a 7% spread