Suppose a company has a pre - IPO value of $41,000,000, has 2,000,000 existing shares, needs 9, 000, 000 in net proceeds, and the investment bank charges a 10% spread. What is the offering share price?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
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Suppose a company has a pre - IPO value of $41,000,000, has 2,000,000 existing
shares, needs 9, 000, 000 in net proceeds, and the investment bank charges a 10%
spread. What is the offering share price?
Transcribed Image Text:Suppose a company has a pre - IPO value of $41,000,000, has 2,000,000 existing shares, needs 9, 000, 000 in net proceeds, and the investment bank charges a 10% spread. What is the offering share price?
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