How much cash will the company raise net of the spread

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Problem 1: A company has hired an investment banking firm for an IPO. The company's current value of equity is $80MM and has currently 3 million share outstanding and will issue 1 million new shares. The investment bank will charge a spread of 6%. What is the value of the offer price and how much cash will the company raise net of the spread?

Reference no: EM132778501

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