Firm X has 100,000 shares outstanding and decides to go public. X plans to raise $5 Million in the operation. One shareholder would like to take the opportunity of the IPO to sell his 10,000 shares. How many primary shares are offered in the IPO if the issue price is $40 (assume zero underwriting spreads)?

Answer rating: 100% (QA)

Going public is a process by which a private company becomes a publiclytraded company allowing it to ... View the full answer