Question
JF Corporation issued 2M shares through an IPO reflecting 30% ownership of the firm. The other 70% are owned by original investors. The offer price
JF Corporation issued 2M shares through an IPO reflecting 30% ownership of the firm. The other 70% are owned by original investors. The offer price was $5 and each share jumped to $10 by the end of the trading day reflecting JF Corporation's true intrinsic value. What is the original shareholders' wealth if the IPO is fairly valued?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077647094
