9-9

During the most recent fiscal year, KD Industries had revenues of $134 million and earnings of $6 million. KD has filed a registration statement with the SEC for its IPO. Before it is offered, KD's investment bankers would like to estimate the value of the company using comparable companies. The investment bankers have assembled the following information based on data for other companies in the same industry that have recently gone public. In each case, the ratios are based upon the IPO price.

Eenie: 2.8

Meenie: 3.93

Minie: 3.37

Moe: 4.35

Company wants to issue 23 million shares. Based upon the price/revenue ratio, what would be a reasonable value for a share in KD?