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It is now 2019 and you need to mise adetional capital to expand your busineas. You have decited to take your firm publie through an
It is now 2019 and you need to mise adetional capital to expand your busineas. You have decited to take your firm publie through an IPO. You would ike to issue an addisional 5.5 militon new ahan Wrough this IPO. Assuming that your fim successtuly completes is IPO, yoo forecast that 2019 not income will be 57.0 million. a. Your investment banier advises you that the prices of other recent IPOs hive been set suoh that the PIE ratios besed on 2019 forecasted eamings average 18.5. Assuming that your IPO is set a price that implies a similar muliple, what will be your IPO price per share? b. What peroent of the firm will you own after the ipor
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