Consider the same setting as Problem 18, but suppose instead 80 of the shareholders redeem their shares, and no warrants are exercised Data from problem 18 a What is the amount of cash per share contributed by the SPAC in that case b If the target is offered 300 million shares, what is the implied ...

a To determine the amount of cash per share contributed by the SPAC we need to calculate the ...

Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares,

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Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares, and no warrants are exercised.

Data from problem 18

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a. What is the amount of cash per share contributed by the SPAC in that case?

b. If the target is offered 300 million shares, what is the implied valuation of the combined company in this case?

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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Apr 14, 2024 12:00 AM

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Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares,

Question:

18. Consider a SPAC with the following terms: 100 million units issued at $10 per share. Promote equal to 20% of the SPAC ownership. 25 million total warrants with an exercise price of $11.50 per share. No PIPE investors.

Step by Step Answer:

a To determine the amount of cash per share contributed by the SPAC we need to calculate the ...View the full answer

Corporate Finance

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