Description of this paper

Wong industries has hired the investment banking firm of Friday,

Description

solution


Question

Wong industries has hired the investment banking firm of Friday, Kruse, & DeLatte (FKD) to help it go public. Wong and FDK agree that Wong`s current value of equity us &80 million. Wong currently has 5 million shares outstanding and will issue 1 million new shares. FDK charges a 6% spread. What is the correctly valued offer price? How much cash will Wong raise net of the spread?

 

Paper#27064 | Written in 18-Jul-2015

Price : $27
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