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Been hired by an investment bank and are helping with the internal offering of Pharma Inc.
Problem a) What will the stock price per share be if the company goes public today (t=0)
Problem b) What return will an investor earn if she buys a share of the company at t=0 and sells it at t=1 (right after receiving the t=1 dividend) What is the capital gain over period?
a. return
b. capital gain
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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