Pricing Shares on IPO
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The problem is referring to the signaling study, which states a 30 percent loss of the new equity to be issued is expected on the announcement date.
A company has 200 million shares outstanding trading at $6 a share. The company announces its intention to raise $100 million by selling new shares.
At what price should the company expect its existing shares to sell immediately after the announcement?
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A company has 200 million shares outstanding trading at $6 a share. The company announces its intention to raise $100 million by selling new ...
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