Question
Question 17 1 Point Using the Industry Average Price-to-Revenues multiple and assuming there are 10 Million shares outstanding, what is the Estimated Value per Share
Question 17
1 Point
Using the Industry Average Price-to-Revenues multiple and assuming there are 10 Million shares outstanding, what is the Estimated Value per Share of Smith and Sons (SNS)?
$32.00
$37.50
$42.50
$45.00
Question 16
1 Point
Using the Industry Average Price-to-Revenues multiple, what is the Estimated Total Value of Smith and Sons (SNS)?
$320 Million
$375 Million
$425 Million
$450 Million
Question 15
1 Point
Using the Industry Average Price-to-Earnings multiple and assuming there are 10 Million shares outstanding, what is the Estimated Value per Share of Smith and Sons (SNS)?
$32.00
$37.50
$42.50
$45.00
Question 14
1 Point
Using the Industry Average Price-to-Earnings multiple, what is the Estimated Total Value of Smith and Sons (SNS)?
$320 Million
$375 Million
$425 Million
$450 Million
Smith and Sons (SNS), Inc. is a private company that manufactures non-branded consumer products and it is considering an IPO. During the most recent fiscal year, SNS had Revenues of $400 Million and Earnings of $25 Million. Before the stock is offered, SNSs Investment Bankers have assembled the following information based on data for other companies in the same industry that have recently gone public:
- Bay Products Corp: Price-Earnings = 16.20x and Price-Revenues = 1.10x
- Frasier-Byrce Inc.: Price-Earnings = 17.70x and Price-Revenues = 1.20x
- Flashion Industries Group: Price-Earnings = 19.10x and Price-Revenues = 1.40x
- We-Creation International: Price-Earnings = 15.00x and Price-Revenues = 0.80x
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