Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such ascamping, skiing, and hiking. So far, your company has gone through three funding rounds:

Round	Date	Investor	Shares	Share Price ($)
Founder	Feb. 2016	You	6,000,000	1.50
Seed	Aug. 2017	Angels	1,300,000	1.00
Series A	Sept. 2018	Venture Capital	4,000,000	3.00

Currently, it is 2019 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 6.0 million new shares through this IPO. You currently have $4.0 million in cash (net of debt), and forecast earnings before interest and taxes of $8.0million this year.

a. Your investment banker advises you that the prices of other recent IPOs have been set such that the enterprise value/EBIT ratios based on 2019 forecasted earnings average16.0. Assuming that your IPO is set at a price that implies a similar multiple, what will your IPO price per share be?

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

Part 1

Your investment banker advises you that the prices of other recent IPOs have been set such that the enterprise value/EBIT ratios based on 2019 forecasted earnings average 16.0. Assuming that your IPO is set at a price that implies a similar multiple, what will your IPO price per share be?

The enterprise value of the firm at the IPO is $ ________. enter your response here million.(Round to the nearest integer.)