The firm you founded currently has 14 million shares, of which you own 8.68 million. You are considering an IPO where you would sell 1.9 million shares for $24. What is the maximum number of secondary shares you could sell and still retain more than 50% ownership of the firm? How much would the firm raise in that case? The maximum number of secondary shares you could sell is shares. (Round to the nearest whole number.) (Round to the nearest dollar.) The amount that the firm would raise is $
The firm you founded currently has 14 million shares, of which you own 8.68 million. You are considering an IPO where you would sell 1.9 million shares for $24. What is the maximum number of secondary shares you could sell and still retain more than 50% ownership of the firm? How much would the firm raise in that case? The maximum number of secondary shares you could sell is shares. (Round to the nearest whole number.) (Round to the nearest dollar.) The amount that the firm would raise is $
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 12P
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