Homework Help is Here – Start Your Trial Now!
Business
Finance
"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $90 Millions of USDs and earnings of $30 of Millions of USDs. Company B has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 14 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Earnings ratio and assuming that they will issue 15 Million shares."

"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $90 Millions of USDs and earnings of $30 of Millions of USDs. Company B has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 14 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Earnings ratio and assuming that they will issue 15 Million shares."

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
See similar textbooks
icon
Related questions
Question

"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of

$90

Millions of USDs and earnings of

$30

of Millions of USDs. Company B has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 14 and

0.8

respectively. Estimate the IPO price for Company B using the Price/Earnings ratio and assuming that they will issue 15 Million shares."

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS