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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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