Superb Professors

Question
This is an investment question involving going public through IPO
and issuing new shares. New help figuring out shares, earnings per share, and new price. please see attached spreadsheet.
ATTACHMENT PREVIEW Download attachment
Problem 23-12RoundDateInvestorSharesSeries AFeb. 2009You500,000Series BAug. 2010Angels1,000,000Series CSept. 2011Venture Capital2,000,000a.b.What percentage of the firm will you own after the IPO?New shares6,500,0002012 net income forecast$7,500,000Forward P/E20.00a.New shares outstandingEarnings per shareNew price with comparable P/Eb.What percentage of the firm will you own after the IPO?Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing inequipment and clothing for recreational activities such as camping, skiing, and hiyour company has gone through three funding rounds:Currently, it is 2012 and you need to raise additional capital to expand your busindecided totake your firm public through an IPO. You would like to issue an addmillion new shares throughthis IPO. Assuming that your firm successfully compyou forecast that 2012 net income will be $7.5 million.Your investment banker advises you that the prices of other recent IPOs hathat the P/E ratios, based on 2012 forecasted earnings, average 20.0. AssumIPO is set at a price that implies a similar multiple, what will your IPO priYour investment banker advises you that the prices of other recent IPOs hathat the P/E ratios, based on 2012 forecasted earnings, average 20.0. AssumIPO is set at a price that implies a similar multiple, what will your IPO pri
Background image of page 1
View the Answer
Percentage you own post IPORequirements1.2.3.4.In cellE21, by using cell references, calculate the number of new shares opt.).In cellE22, by using cell references, calculate the forecasted earnings perIn cellE23, by using cell references, calculate the share price for the IPOIn cellE27, by using cell references, calculate the percentage of the firm tafter the IPO(1 pt.).
Background image of page 2
 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

The post This is an investment question involving going public appeared first on Superb Professors.

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"