Wandou Inc. is a leading Chinese manufacturing company that provides a wide range of home, office and garden furniture. It wants to expand its business internationally. The proposed expansion would require the firm to raise about $15 million in new capital. Because Wandou currently has a debt ratio of 45% and because current shareholders already have all their personal wealth invested in the company, they would like to sell common stock to the public to raise the $15 million. However, the current shareholders want to retain voting control. The estimated pre-IPO value of equity of the company is about $65 million and there are 6.5 million of existing shares of stock held by current shareholders. The investment bank will charge a 7% spread. 1. To net $15 million, what is the total value of stocks that must be sold (approximately)? * 2. What percentage of shares will the new investors require? 3. How many shares will the new investors require (approximately)? * 4. What is the estimated offer price per share?* 5. What is the total post-IPO value of equity?*