Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing and hiking. So far, your company has gone through three funding rounds Round Series A Series B Series C Date Feb. 2013 Aug. 2014 Sept. 2015 Shares 400,000 1,000,000 2,100,000 Investor Share Price (S) You Angels Venture Capital 1.50 1.50 3.50 It is now 2016 and you need to raise additional capital to expand your business. You have decided to take your firm public through an IPO. You would like to issue an additional 5.0 millon new shares through this IPO. Assuming that your firm successfully completes its IPO, you forecast that 2016 net income will be $7.0 million a. Your investment banker advises you that the prices Assuming that your IPO is set at a price that implies a similar multiple, what will be your IPO price per share? b. What percent of the firm will you own after the IPO? of other recent IPOs have been set such that the P/E ratios based on 2016 forecasted earnings average 20.4 a. Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2016 forecasted earnings average 20.4 Assuming that your IPO is set at a price that implies a similar multiple, what will be your IPO price per share? The IPO price will be $1 per share. (Round to the nearest cent.) b. What percent of the firm will you own after the IPO? After the IPO, you will own % of the firm. (Round to one decimal place.)