You founded your firm in 2019. In 2020, you sold 3 million shares to a venture capitalist, with a price of $11 per share. After this transaction, your company has a total of 6 million shares.

It is currently 2021, 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 9 million new shares through this IPO. Assuming that your firm successfully completes its IPO, you forecast that 2021 earnings will be $3 million.

Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2021 forecasted earnings average 17x. Assuming that your IPO is set at a price that implies a similar multiple, your IPO price per share will be closest to:

a.$62.33

b.$5.67

c.$37.40

d.$3.40