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	Date	Investor	Shares	Share Price ($)
Series A	Feb. 2009	You	500 000	1.00
Series B	Aug. 2010	Angels	1 000 000	2.00
Series C	Sept. 2011	Venture Capital	2 000 000	3.50

Currently, it is 2012 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 6,000,000 million new shares through this IPO. Assuming that your firm successfully completes its IPO, you forecast that 2012 net income will be $7.5 million.

a. Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2012 forecasted earnings average 18. Assuming that your IPO is set at a price that implies a similar multiple, what will your IPO price per share be?

The new price with comparable P/E is____________ $. (round to two decimals)

b. What percentage of the firm will you own after the IPO?

After the IPO, you will own ________% of the firm. (round to one decimal)