QUESTION 14 "Company B, is a private company that designs, manufactures and distributes certain consumer...

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Finance

QUESTION 14

"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $78 Millions of USDs and earnings of $31 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 12 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Earnings ratio and assuming that they will issue 17 Million shares."

10 points

QUESTION 15

"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $78 Millions of USDs and earnings of $31 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 12 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Revenues ratio and assuming that they will issue 17 Million shares."

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