Question
Exercise 7-7 A private company is planning an initial public offering. Its investment bank forecasts earnings of $400,000 and plans to offer 160,000 shares of
Exercise 7-7
A private company is planning an initial public offering. Its investment bank forecasts earnings of $400,000 and plans to offer 160,000 shares of common stock to investors. The industry in which the firm operates has an average P/E ratio of 16 times.
Required: Determine the share price of the initial public offering.
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Corporate Financial Management
Authors: Glen Arnold
4th Edition
0273719068, 978-0273719069
