The firm you founded currently has 13 million shares, of which you own 7 million. You are considering an IPO where you would sell 3 million shares for $24 each. If all of the shares sold are from your holdings, how much will the firm raise? What will be your percentage ownership of the firm after the IPO? Firm raises $0, You will own 30.8% of firm Firm raises $72 million, You will own 53.8% of firm Firm raises $0, You will own 53.8% of firm Firm raises $72 million, You will own 0% of firm

The firm you founded currently has 13 million shares, of which you own 7 million. You are considering an IPO where you would sell 3 million shares for $24 each. If all of the shares sold are from your holdings, how much will the firm raise? What will be your percentage ownership of the firm after the IPO? Firm raises $0, You will own 30.8% of firm Firm raises $72 million, You will own 53.8% of firm Firm raises $0, You will own 53.8% of firm Firm raises $72 million, You will own 0% of firm

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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