Question
Roland Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Roland and ESM agree that Roland's
Roland Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Roland and ESM agree that Roland's current value of equity is $64 million. Roland currently has 5 million shares outstanding and will issue 2 million new shares. ESM charges a 6% spread.
What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent.
.........?
How much cash will Roland raise net of the spread (use the rounded offer price)? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.
.........?
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Finance And Sustainability
Authors: Karolina Daszyńska-Żygadło, Agnieszka Bem, Bożena Ryszawska, Erika Jáki, Taťána Hajdíková
1st Edition
3030344037, 978-3030344030
