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Need help with this IPO problem! please state formulas used! Value of Firm after IPO...

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Accounting

Need help with this IPO problem! please state formulas used!

Value of Firm after IPO = 5 * Value of Firm before IPO.

This means that Cash generated from IPO = 4 * Value of Firm before IPO.

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2 EPS 3 P/E estimate 4 #Shares newly issued 5 ownership before IPO 6 ownership after IPO 8 Estimated Share price 11 Firm Value (Before) Firm Value (after) 13 Total of Shares after IPO 14 Shares owned by you after IPO 15 16 Estimated Firm Value before IPO 17 Estimated Cash generated from IPO 18 Estimated Firm Value after IPO 19 20 2.00 20 200,000 100% 10% 40.00

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