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Could you pls help me to solve for a and b? During the most recent fiscal year, KD Industries had revenues of $400 million and

Could you pls help me to solve for a and b? image text in transcribed
During the most recent fiscal year, KD Industries had revenues of $400 million and earnings of $30 million. KD has filed a registration statement with the SEC for its IPO. KD is planning to issue 10 million shares. 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. Comparable Company Eenie Meenie Minie Moe Price/Earnings 12.4 14.6 16.2 20.4 Price/Revenues 1.6 1.4 1.2 0.8 a. Based upon the price/revenue ratio, what would be a reasonable price per share for KD? b. Based upon the price/earnings ratio, what would be a reasonable price per share for KD

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