The firm you founded currently has 16 million shares, of which you own 5 million. You are considering an IPO where you would sell 2 million shares for $22 each. If all of the shares sold are primary shares, how much will the firm raise? What will be your percentage ownership of the firm after the IPO?
The firm you founded currently has 16 million shares, of which you own 5 million. You are considering an IPO where you would sell 2 million shares for $22 each. If all of the shares sold are primary shares, how much will the firm raise? What will be your percentage ownership of the firm after the IPO?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
The firm you founded currently has 16 million shares, of which you own 5 million. You are considering an IPO where you would sell 2 million shares for $22 each. If all of the shares sold are primary shares, how much will the firm raise? What will be your percentage ownership of the firm after the IPO?
Expert Solution
Step 1
It is given that firm has 16 million shares in total.
and I own 5 million.
If i sell 2 million of my shares for $22 each then firm will raise.
.
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