Problemsuppose a company has a pre-ipo value of 50 million, Ask an Expert

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Problem:

Suppose a company has a pre-IPO value of $50 million, has 2 million existing shares, needs $9.5 million in net proceeds, and the investment charges a 6% spread.

Required:

Question: What is the percentage of shares required by new investors?

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166455

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