Intro

You founded a social media company, called Allogether, that was a startling success and is now ready for an

IPO. The company had sales of $$58$ million and net income of $$8\mathrm{.}12$ million in its most recent financial year. Your

investment bankers collected the following information from your competitors at the time of their IPO:

Your company will have $15$ million shares outstanding after the IPO.

Part $1$

What should be the offer price based on P$/$E ratios?

Part $2$

What should be the offer price based on Price$/$Sales ratios?