Okay retarded simple question but I’ve burned all my accounting books. If you have a company with book value of $100M and they raise $200M cash thru equity, then quick-and-dirty their new BV is basically $300M less cost of the IPO, right?
I would say pretty much, yeah.
Okay thanks, just making sure I’m not being totally retarded in my simplification.
show the computation purealpha
yes because the additional capital raised is cash and with no corresponding liability so it flows right to equity