Question
Stone Industries has hired the investment banking firm to help for going public. Stone and investment bank agree that Stone's current value of equity is
Stone Industries has hired the investment banking firm to help for going public. Stone and investment bank agree that Stone's current value of equity is $75 million. Stone currently has 5 million shares outstanding and will issue 1 million new shares. Investment bank charges a 7% spread. What is the offer price based on this information?
| a. | $12.5 | |
| b. | $12.64 | |
| c. | $15.00 | |
| d. | $14.79 |
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
2nd Edition
003034509X, 9780030345098
