Hello - If you could please assist, that would be great. This is part 2 of a larger question.

We already have question a-d answered.

a- stock price pre ipo: $17.50 / b. gross proceeds required: $32.26 / c. Total value after IPO: $240M , % of total post IPO value required: 13.32% / d. # new shares: 1.84M, Total # of shares after IPO: 13.84

Thank you.

Chapter: Problem: 18 8 Lingadalli Corporation (LC) is condsidering an IPO. LC has 12 million shares of common stock owned by its founder and early investors. LC has no preferred stock, debt, or short-term investments. Based on its free cash flow projection, LC's intrinsic value of operations is $210 million. LC wants to raise $30 million (net of flotation costs) in net proceeds. The investment bank charges a 7% underwriting spread. All other costs associated with the IPO are small enough to be neglected in this analysis and all shares sold in the IPO will be newly issued shares. Answer the following questions Inputs Value of operations (prepo) Number of existing shares (nexisting) Target net proceeds Flotation costs (F) $210 million 12 million $30 million 7% e. Based on number of new shares sold in the IPO and the total amount paid by the new shareholders, what is the offer price? Offer price = Pomer t. Based on total value of the company after the IPO and the total number of outstanding shares after the IPO, what is the intrinsic price per share after the IPO? Price per share after the IPO = Prostipo = g. Compare the pre-iPo price, the offer price, and the post-IPO price. Explain why they are similar of different. (No calculations are required.) Chapter: Problem: 18 8 Lingadalli Corporation (LC) is condsidering an IPO. LC has 12 million shares of common stock owned by its founder and early investors. LC has no preferred stock, debt, or short-term investments. Based on its free cash flow projection, LC's intrinsic value of operations is $210 million. LC wants to raise $30 million (net of flotation costs) in net proceeds. The investment bank charges a 7% underwriting spread. All other costs associated with the IPO are small enough to be neglected in this analysis and all shares sold in the IPO will be newly issued shares. Answer the following questions Inputs Value of operations (prepo) Number of existing shares (nexisting) Target net proceeds Flotation costs (F) $210 million 12 million $30 million 7% e. Based on number of new shares sold in the IPO and the total amount paid by the new shareholders, what is the offer price? Offer price = Pomer t. Based on total value of the company after the IPO and the total number of outstanding shares after the IPO, what is the intrinsic price per share after the IPO? Price per share after the IPO = Prostipo = g. Compare the pre-iPo price, the offer price, and the post-IPO price. Explain why they are similar of different. (No calculations are required.)