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please help i rate well! thanks . please answer both a and b Three years ago, you founded Outdoor Recreation, Inc., a retaler specializing in

image text in transcribed please help i rate well! thanks . please answer both a and b
Three years ago, you founded Outdoor Recreation, Inc., a retaler specializing in the sale of equipment and clothing for recreational activities such as camping, skiing and hiking So far your company has gone through three funding rounds Round Senses Senes Senesc Date Investor Feb 2013 You Aug 2014 Angels Sept 2015 Venture Capital Shares 600,000 1,000,000 2.000.000 Share Price ($) 100 1.00 250 It is now 2016 and you need to raise additional capital to expand your business. You have decided to take your firm public through an IPO You would like to issue an additional 50 million new shares through this IPO. Assuming that your firm successfully completes its IPO. you forecast that 2016 net income will be $75 million a. Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2016 forecasted earnings average 182 Assuming that your PO is set at a price that implies a simtar multiple, what will be your IPO price per share? b. What percent of the firm will you own after the IPO? Ince a. Your investment banker vises you that the prices of the recent IPOs have been set such that the PE ratios based on 2016 forecasted earnings average 182 Assuming that your IPO 15 set at a price that imples a similar multiplo what will be your IPO price per shore The Oprice will be per share (Round to the nearest cont)

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