Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 08, 2024

Need help with this IPO problem! please state formulas used! Value of Firm after IPO = 5 * Value of Firm before IPO. This means

Need help with this IPO problem! please state formulas used!

Value of Firm after IPO = 5 * Value of Firm before IPO.

This means that Cash generated from IPO = 4 * Value of Firm before IPO.

2 EPS 3 P/E estimate 4 #Shares newly issued 5 ownership before IPO 6 ownership after IPO 8 Estimated Share price 11 Firm Value (Before) Firm Value (after) 13 Total of Shares after IPO 14 Shares owned by you after IPO 15 16 Estimated Firm Value before IPO 17 Estimated Cash generated from IPO 18 Estimated Firm Value after IPO 19 20 2.00 20 200,000 100% 10% 40.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

116. If X is uniformly distributed on [0, 1], find a linear transformation Y cX d such that Y is uniformly distributed on [a, b], where a and b are any two numbers such that a b. Is there another...

Answered: 1 week ago

Question

★★★★★

1. How serious were the alleged accounting misstatements? As part of your answer, consider whether they were material and whether they were fraudulent. 2. Suppose you were defending Mr. Rand. Could...

Answered: 1 week ago

Question

★★★★★

n 12 P Corporation acquired an 80% interest in s Corporation on January 1, 2014, when the book values of S assets and liabilities were equal to their fair values. The cost of the 80% interest was...

Answered: 1 week ago

Question

★★★★★

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below: Selling price per unit $ 23 Variable expense per unit $ 17 Fixed...

Answered: 1 week ago

Question

★★★★★

Dying for a Paycheck, Jeffrey Pfeffer: Pfeffer presents layoffs as a lose-lose proposition and lays out the case through data that companies don't have to resort to layoffs. Layoffs negatively impact...

Answered: 1 week ago

Question

★★★★★

A maintenance workshop wants to add a new welding station. So the welding manager asked the simulation engineer to provide him with how much space should they allocate. What measures can the...

Answered: 1 week ago

Question

★★★★★

Are social media companies culpable, complicit, or capable in relation to societal harms perpetrated on their platform - and what might Nike's Project Rewire look like for a social media company...

Answered: 1 week ago

Question

★★★★★

Free station Calculations A very accurate solution is required for the location of a holding down bolt on a compressor within a range of +/- 5mm. Three precise pins are located surrounding the bolt...

Answered: 1 week ago

Question

★★★★★

There are six M1A1 tanks awaiting repair at Ft. Hood. Assume that only one tank can be repaired at a time, and no more tanks will be accepted until they process the 6 tanks currently in the repair...

Answered: 1 week ago

Previous Question Next Question