Current shareholders after the deal

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a) How big of an equity stake must be given to the NEW share- holders in order to raise the required $100 million? (Note: Find a MINIMUM percentage required so that new shareholders just get fair return on capital).

b) What is the value of the equity stake held by the CURRENT shareholders after the deal? How much do current shareholders beneÖt from the deal?

c) How many new shares must be issued, and at what price will they be sold?

Reference no: EM131388328

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