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Rock Industries has hired the investment banking firm to help for going public. Rock and investment bank agree that Rock's current value of equity is
Rock Industries has hired the investment banking firm to help for going public. Rock and investment bank agree that Rock's current value of equity is $75 million. Rock currently has 5 million shares outstanding and will issue 2 million new shares. Investment bank charges a 7% spread. What is the offer price based on this information?
| a. | $10.93 | |
| b. | $15.00 | |
| c. | $14.59 | |
| d. | $10.71 |
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