Question
I NEED HELP ASAP !!!! b) Answer parts i, ii and iii based on the information below: ABC Learning Pty Ltd needs to raise $85
I NEED HELP ASAP !!!!
b) Answer parts i, ii and iii based on the information below: ABC Learning Pty Ltd needs to raise $85 million for business growth (this is the net amount required by the company). The board has decided to raise $49 million of debt capital and the remaining $36 million through equity capital by IPO. The underwritten service was on the stand-by basis, and the investment bank charges a commission of 4%. The agreed IPO price is $15 per share to the public. i. If the IPO is successful, what are the total proceeds of the share offering? (1 mark) ii. How many shares should the company sell to the public? (1 mark) iii. For a stand-by service, how much commission does the investment bank earn? (1 mark)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started