The firm you founded currently has 13 million shares, of which you own 6 million. You are considering an IPO where you would sell 2 million shares for $16 each. If all of the shares sold are primary shares, how much will the firm raise? What will your percentage ownership of the firm be after the IPO? If all of the shares sold are primary shares, the firm will raise $ million. (Round to one decimal place.) What will your percentage ownership of the firm be after the IPO?

The firm you founded currently has 13 million shares, of which you own 6 million. You are considering an IPO where you would sell 2 million shares for $16 each. If all of the shares sold are primary shares, how much will the firm raise? What will your percentage ownership of the firm be after the IPO? If all of the shares sold are primary shares, the firm will raise $ million. (Round to one decimal place.) What will your percentage ownership of the firm be after the IPO?

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

Problem 2P

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