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Please show all formulas and calculations. 1.Ocean Technologies is considering going public and is trying to determine a price for their IPO. Their most recent

Please show all formulas and calculations.

1.Ocean Technologies is considering going public and is trying to determine a price for their IPO. Their most recent earnings per share = $7.50 Mediterranean Corp is a similar firm, has a stock price per share of $120 and earnings per share of $5.50. What price do you recommend Ocean use for their IPO?

Answer: (120/5.5)*7.5=163.64

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