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, SNS’s 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

Fashion Industries Group: Price-Earnings = 19.10x and Price-Revenues = 1.40x

We-Creation International: Price-Earnings = 15.00x and Price-Revenues = 0.80x

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

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

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

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