Question
1 Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $75
1 "Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $75 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 12 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Earnings ratio and assuming that they will issue 20 Million shares."
2 "Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $75 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 12 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Revenues ratio and assuming that they will issue 20 Million shares."
3 "Company A has just issued a callable (at par) 8 year, 12% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $104 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05."
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