The management of Mitchell Labs decided to go private in $2002$ by buying all $2\mathrm{.}50$ million of its outstanding shares at $$19\mathrm{.}50$ per share. By $2006,$ management had restructured the company by selling off the petroleum research division for $$14\mathrm{.}80$ million, the fiber technology division for $$8\mathrm{.}65$ million, and the synthetic products division for $$22$ million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively on contract research and will generate earnings per share of $$1\mathrm{.}35$ this year. Investment bankers have contacted the firm and indicated that if it reentered the public market, the $2\mathrm{.}50$ million shares it purchased to go private could now be reissued to the public at a P$/$E ratio of $14$ times earnings per share.