You are going to take public in Q3 2022 the firm you founded in Q3 2018. In the IPO, the firm will issue 3 million new shares. With the IPO, you forecast earnings before interest and taxes of $7 million for 2022.

The following shows information for the firms previous three funding rounds:

a. Your IPO price will be set at a firm value/EBIT ratio multiple of 26.0 based on 2022 forecasted earnings, which is in accordance with the price multiple of other recent comparable IPOs. What will your IPO price per share be?

b. After the IPO, what fraction of the firm will you own?

Round Date Series A Q3 2018 Series B Q3 2019 Series C Q3 2020 Shares Share Price ($) Investor You 300,000 1.00 Angels 1,100,000 2.50 Venture capital 2,200,000 4.25