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-   -   Price/number of new common stock (https://www.askmehelpdesk.com/showthread.php?t=737005)

  • Mar 2, 2013, 11:44 AM
    bla11
    Price/number of new common stock
    Hi,

    I have a question about issuing new common stock for an investment.
    Given the company's balance sheet;

    Company B Balance Sheet
    Assets €1,000,000 Equity €1,000,000

    Number and price of outstanding costs, as well as initial cost of the investment and PV of net cash flows, how can I derive new common stock price and number? (the whole amount will be financed through issuing additional common stock)

    I only need a few pointers, not the answer :-)
    I have tried many sources, but I cannot find how to approach the problem, everything seems relevant to Dividends, for which there is no mention in the exercise.

    Thanks

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