The company will be owned by the new investors

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Reference no: EM131300399

Highlander Homes stock trades at $30 per share and there are 50 million shares outstanding. The management would like to raise $300 million in an SEO. If the underwriter charges 2% of gross proceeds, all other cost is $10 million and all the shares are primary shares sold to new investors, then

1. What percentage of the company will be owned by the new investors (ignore all other cost)?

2. What percentage of the company will be owned by the new investors (including all other cost)?

Reference no: EM131300399

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