This is an investment question involving going public through IPO and issuing new shares. New help figuring out shares, earnings per share, and new price. please see attached spreadsheet.

Problem 23-12 Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So fa your company has gone through three funding rounds: Round Series A Series B Series C Date Feb. 2009 Aug. 2010 Sept. 2011 Investor You Angels Venture Capital Shares 500,000 1,000,000 2,000,000 Currently, it is 2012 and you need to raise additional capital to expand your business. You h decided to take your firm public through an IPO. You would like to issue an additional 6.5 million new shares through this IPO. Assuming that your firm successfully completes its IP you forecast that 2012 net income will be $7.5 million. a. Your investment banker advises you that the prices of other recent IPOs have been se that the P/E ratios, based on 2012 forecasted earnings, average 20.0. Assuming that y IPO is set at a price that implies a similar multiple, what will your IPO price per share b. What percentage of the firm will you own after the IPO? New shares 2012 net income forecast Forward P/E 6,500,000 $7,500,000 20.00 a. Your investment banker advises you that the prices of other recent IPOs have been se that the P/E ratios, based on 2012 forecasted earnings, average 20.0. Assuming that y IPO is set at a price that implies a similar multiple, what will your IPO price per share New shares outstanding Earnings per share New price with comparable P/E b. What percentage of the firm will you own after the IPO? Percentage you own post IPO Requirements 1. In cell E21, by using cell references, calculate the number of new shares outstanding pt.). 2. In cell E22, by using cell references, calculate the forecasted earnings per share (1 pt 3. In cell E23, by using cell references, calculate the share price for the IPO (1 pt.). 4. In cell E27, by using cell references, calculate the percentage of the firm that you ow after the IPO (1 pt.). alizing in the sale of ng, and hiking. So far, Share Price ($) 1.00 2.00 3.50 your business. You have ue an additional 6.5 ully completes its IPO, nt IPOs have been set such 0.0. Assuming that your ur IPO price per share be? nt IPOs have been set such 0.0. Assuming that your ur IPO price per share be? w shares outstanding (1 nings per share (1 pt.). r the IPO (1 pt.). the firm that you own Problem 23-12 Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So fa your company has gone through three funding rounds: Round Series A Series B Series C Date Feb. 2009 Aug. 2010 Sept. 2011 Investor You Angels Venture Capital Shares 500,000 1,000,000 2,000,000 Currently, it is 2012 and you need to raise additional capital to expand your business. You h decided to take your firm public through an IPO. You would like to issue an additional 6.5 million new shares through this IPO. Assuming that your firm successfully completes its IP you forecast that 2012 net income will be $7.5 million. a. Your investment banker advises you that the prices of other recent IPOs have been se that the P/E ratios, based on 2012 forecasted earnings, average 20.0. Assuming that y IPO is set at a price that implies a similar multiple, what will your IPO price per share b. What percentage of the firm will you own after the IPO? New shares 2012 net income forecast Forward P/E 6,500,000 $7,500,000 20.00 a. Your investment banker advises you that the prices of other recent IPOs have been se that the P/E ratios, based on 2012 forecasted earnings, average 20.0. Assuming that y IPO is set at a price that implies a similar multiple, what will your IPO price per share New shares outstanding Earnings per share New price with comparable P/E b. What percentage of the firm will you own after the IPO? Percentage you own post IPO Requirements 1. In cell E21, by using cell references, calculate the number of new shares outstanding pt.). 2. In cell E22, by using cell references, calculate the forecasted earnings per share (1 pt 3. In cell E23, by using cell references, calculate the share price for the IPO (1 pt.). 4. In cell E27, by using cell references, calculate the percentage of the firm that you ow after the IPO (1 pt.). alizing in the sale of ng, and hiking. So far, Share Price ($) 1.00 2.00 3.50 your business. You have ue an additional 6.5 ully completes its IPO, nt IPOs have been set such 0.0. Assuming that your ur IPO price per share be? nt IPOs have been set such 0.0. Assuming that your ur IPO price per share be? w shares outstanding (1 nings per share (1 pt.). r the IPO (1 pt.). the firm that you own Problem 23-12 Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So fa company has gone through three funding rounds: Round Series A Series B Series C Date Feb. 2009 Aug. 2010 Sept. 2011 Investor You Angels Venture Capital Currently, it is 2012 and you need to raise additional capital to expand your business. You h decided to take your firm public through an IPO. You would like to issue an additional 6.5 m new shares through this IPO. Assuming that your firm successfully completes its IPO, you f that 2012 net income will be $7.5 million. a. Your investment banker advises you that the prices of other recent IPOs have been se that the P/E ratios, based on 2012 forecasted earnings, average 20.0. Assuming that y is set at a price that implies a similar multiple, what will your IPO price per share be? b. What percentage of the firm will you own after the IPO? New shares 2012 net income forecast Forward P/E 6,500,000 $7,500,000 20.00 a. Your investment banker advises you that the prices of other recent IPOs have been se that the P/E ratios, based on 2012 forecasted earnings, average 20.0. Assuming that y is set at a price that implies a similar multiple, what will your IPO price per share be? New shares outstanding Earnings per share New price with comparable P/E $ $10,000,000.00 150,000,000.00 $15.00 b. What percentage of the firm will you own after the IPO? Percentage you own post IPO Requirements 1. 2. 5.00% In cell E21, by using cell references, calculate the number of new shares outstanding In cell E22, by using cell references, calculate the forecasted earnings per share (1 pt 3. In cell E23, by using cell references, calculate the share price for the IPO (1 pt.). 4. In cell E27, by using cell references, calculate the percentage of the firm that you ow the IPO (1 pt.). a retailer specializing in the sale of camping, skiing, and hiking. So far, your Shares Share Price ($) 500,000 1.00 1,000,000 2.00 2,000,000 3.50 ital to expand your business. You have ould like to issue an additional 6.5 million uccessfully completes its IPO, you forecast s of other recent IPOs have been set such ngs, average 20.0. Assuming that your IPO at will your IPO price per share be? e IPO? s of other recent IPOs have been set such ngs, average 20.0. Assuming that your IPO at will your IPO price per share be? e IPO? Err:502 number of new shares outstanding (1 pt.). forecasted earnings per share (1 pt.). share price for the IPO (1 pt.). percentage of the firm that you own after