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Help please! Finance is Fun, LLC (FINANCE) is a start up in educational enrichment space. It's platform creates an appealing environment for students to learn
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Finance is Fun, LLC (FINANCE) is a start up in educational enrichment space. It's platform creates an appealing environment for students to learn finance and generates its own materials and content. They exploring strategic aftermatives including capital raises, M\&A and other cash conservation strategies. 1. (18 points) Based on the following 3 comparable companies, what do you think would be FINANCE's IPO stock price if it decided to commence a public offering, and why? Your answer should be based on using a multiple of Revenue and a P/E. (You must show your work.) Annual Income Statement (in thousands, except per share data) Revenue CoGS Gross Margin SG\&A Op Income Interest expense Pre-tax Income Taxes Net income EPS $ \begin{tabular}{l|llll|ll} 1.00 & $ & 0.80 & $ & 1.05 & $ & 1.35 \end{tabular} Common S/O Stock Price Balance Sheet Cash Debt \begin{tabular}{|rr|rr|rr|rr} \hline$ & 312.5 & $ & 750.0 & $ & 1,000.0 & $ & 1,200.0 \\ \hline$ & 393.8 & $ & 1,000.0 & $ & 200.0 & $ & \\ \hline \end{tabular} Multiple of Revenue =$26.40 P/E=$22.40Step by Step Solution
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