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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

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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 $60 Millions of USDs and earnings of $25 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 10 and 0.8 respectively. Estimate the IPO price for Company B using the Price/Revenues ratio and assuming that they will issue 20 illion shares." QUESTION 15 "Company A has just issued a callable (at par) 9 year, 11% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $103 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05." Save A Click Save and Submit to save and submit. Click Save All Answers to save all answers MacBook Pro "200" % 5 & 7 3 4 6 8 9 0

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