With a firm commitment IPO, you can work to set the share price for your $1$ million shares. This will result in a total of $11$ million outstanding

shares. You would like to set the share price at $$31$ per share. There is an underwriting spread of $5\%.$

How much could you potentially raise from the IPO?

What would be the market value of Rogue after the IPO?

Value raised by IPO:

Market value after IPO:

Next, you look into the potential of issuing a bond to raise debt funding. To get an idea of potential bond performance, rates, and other data,

you decide to look at the US Treasury bonds market. You find that in January of $2010,$ the US treasury issued a $10-$year inflation$-$indexed note

with a coupon of $4\%,$ which pays semiannually. When the bond was issued, the CPI was $400,$ but now, $10$ years later, the CPI is at $300.$ Assume

that the face value is $$1000$ and that the bond is protected against deflation.

What was the principle and coupon payment made on the bond in $2020?$

How does performance of this bond relate to potential performance of your bond, should Rogue use this method of financing?

CPI Index Depreciation:

Coupon Payment:

Principle Amount:

How does performance of this bond relate to potential performance of your bond, should Rogue use this method of financing? $($Use $3$ sentences to address the question.$)$