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Assume that you are trying to estimate a price per share on an initial public offering (IPO) of a company involved in real estate. The
Assume that you are trying to estimate a price per share on an initial public offering (IPO) of a company involved in real estate. The company recorded the following indicated eamings per share (EPS) in the last four years YEAR EPS 1 14 8 2 3 16 4 20 You also have data on other similar companies in the real estate sector which are already listed at the local stock exchange Comparable Firm Market Price Per share (MPS) Earnings Per Share (EPS) A 15 10 B 60 60 D 30 25 90 50 Extracts from the books of the company reveal the following Ordinary Share Capital (Sh. 1.5 Par value) Borrowings Sh. 300 Million Sh. 150 Million Required: Estimate the price per share for the company
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