Reference no: EM132918920

1.The firm you founded currently has 11 million shares, of which you own 5 million. You are considering an IPO where you would sell 1 million shares for $31 each. If all of the shares sold are primary shares, how much will the firm raise? What will be your percentage ownership of the firm after the IPO?

If all of the shares sold are primary shares, the firm will raise $_______ million. (Round to one decimal place.)

Your percentage ownership of the firm after the IPO will be ________%. (Round to one decimal place.)

2.The firm you founded currently has 16 million shares, of which you own 7 million. You are considering an IPO where you would sell 1 million shares for $26 each. If all of the shares sold are from your holdings, how much will the firm raise? What will be your percentage ownership of the firm after the IPO?

If all of the shares sold are from your holdings,  (Select the best choice below.)

A the firm will raise $416 million from the IPO

B the firm will raise no money from the IPO.

C the firm will raise $26 million from the IPO.

D the firm will raise $182 million from the IPO

Your percentage ownership of the firm after the IPO will be ________%.

3.The firm you founded currently has 12 million shares, of which you own 7.00 million. You are considering an IPO where you would sell 2 million shares for $20. What is the maximum number of secondary shares you could sell and still retain more than 50% ownership of the firm? How much would the firm raise in that case?

The maximum number of secondary shares you could sell is __________ shares.  (Round to the nearest whole number.)

The amount that the firm would raise is $__________.