Wesen Corp. plan to launch NASDAQ through initial public offerings (IPO). After IPO, there will be 500,000 shares of common stock outstanding. In the table below you could find the income statement of Wesen in last fiscal year. If the average PE ratio for the companies in the same industry is 20 and the average price-sales ratio is 5, dividend payout ratio is 0. What is the reasonable offering price? (Please explain why you use the method you choose to price the stock)

Sales 15,000,000

Cost 10,000,000

Depreciation 4,000,000

EBIT 1,000,000

Interest Exp 1,500,000

EBT -500,000

TAX 0

NI -500,000