Equity value of rent after the ipo

Assignment Help Finance Basics
Reference no: EM133110068

As before, answer and/or evaluate their statement: "I'm trying to figure out this whole IPO valuation thing. As an example, suppose that RENT was worth $940 billion pre-IPO. Their current market cap is about $740mm, but the stock has dropped lately due to Omicron, so that seems like a reasonable estimate. From Sources of Capital on Factset, it looks like they raised $357mm in their IPO, so lets assume that this was their target net-of-fees proceeds. From reading the S-1, it looks like there were about 43 million shares outstanding pre-IPO. I think that we could have charged them 3% as our underwriting spread. I need to know the following:"

1) What would have been their target gross proceeds raised before our fees?

2) What is our estimate for the equity value of RENT after the IPO?

3) What percentage of the firm is now owned by new investors?

4) How many shares should they have issued?

5) And, at what price?

Reference no: EM133110068

Questions Cloud

What is the corresponding debit to wage expense : At the end of 2021 each employee had 6 days of accrued/unused compensated absences. What is the corresponding debit to wage expense
Calculate gross leverage and net leverage : Calculate gross leverage and net leverage, as measured by Debt/EBITDA, through each level of debt, including total debt.
Prepare the journal entries on the lessee books : Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses
Organizational behavior : As a student of organizational behavior, you have the opportunity to investigate what factors lead employees to make certain choices.
Equity value of rent after the ipo : As before, answer and/or evaluate their statement: "I'm trying to figure out this whole IPO valuation thing. As an example, suppose that RENT was worth $940 bil
What is the value of stock : Unique Stores common stock pays a constant annual dividend of $1.75 a share. Using Gordon's DDM, what is the value of this stock at a discount rate of 13.25 per
What is the direct labor rate variance : Bellingham Company produces a product that requires 4 standard direct labor hours per unit. What is the direct labor rate variance
What did that leader do that was effective : What did that leader do that was effective or ineffective? What might have made that leader more effective - includes references and citations in APA Style
Effective cost of the bank loan : Lamar Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 55; and it currently pays on the 5th day and takes discounts. Lamar plans to e

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the descriptive statistics of sales

Mikel Bookstore has four locations in one large metropolitan area. Monthly sales (in thousands of dollars) from a random of 24 months

  Current market price of the firms bonds

Assuming semiannual coupon payments, what will be the current market price of the firms bonds?

  What are the free cash flows of the project

Your firm is considering a project that would require purchasing $7.5 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the firm’s tax rate is 40%, the appropriate cost of cap..

  What is the approximate apy of the account

If the APR of a savings account is 4.8% and interest is compounded monthly, what is the approximate APY of the account?

  What is the present value of the payments

Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is 7.5 percent.

  Evaluate the desirability of replacing the old trucks

A national courier service is considering the replacement of five of its delivery trucks in its southern Ontario division.

  Find annual increase in the value of the comic book

Assume that in 2015, the first edition of a comic book was sold at auction for $1,190,000. The comic book was originally sold in 1940 for $.08.

  Works with several products or services

Identify a company that works with several products or services. Visit and write down the address of your website.

  Zero debt to successively higher levels of debt

If a tax paying company went from zero debt to successively higher levels of debt, determine why would you expect its stock price to rise?

  Explain the process of environmental assessment

Explain the process of environmental assessment. What are the major international variables to consider in the scanning process?

  What was your total return for last year

Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year? (Please provide detailed formula/calculations)

  Find the selling price

The Clearwater Aquarium Corporation will produce 66,000 ten gallon aquariums next year. Variable costs are 40% of sales while fixed costs total $133,200.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd