Question
QUESTION 14 Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of
QUESTION 14
"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $78 Millions of USDs and earnings of $31 of Millions of USDs. Company B has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 12 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Earnings ratio and assuming that they will issue 17 Million shares."
10 points
QUESTION 15
"Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $78 Millions of USDs and earnings of $31 of Millions of USDs. Company B has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 12 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Revenues ratio and assuming that they will issue 17 Million shares."
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
