Use the following information for questions
A company is planning to go public. Currently, the pre-IPO value of the firm's equity is $95 million, the number of outstanding shares is 3.5 million, the company need to raise $17 million, and the floatation
cost of new equity is 12%.
1. Calculate the gross proceeds needed from an IPO given the following information.
2.
Part a What is the post-IPO equity value?
Part b What is the offer price?