Question
Zelda's Zipper Inc. has 3mm shares of stock outstanding, spread among 60 shareholders who are all friends or family of Zelda. Its trailing twelve months
Zelda's Zipper Inc. has 3mm shares of stock outstanding, spread among 60 shareholders who are all friends or family of Zelda. Its trailing twelve months revenue was $6mm and Net Income was $2mm. Last year Zelda invested in 3D printing technology for her zippers, so now has $1mm in Property, Plant and Equipment on her balance sheet, partly financed by a $500,000 loan from Chase Bank, Zelda recently hired an accounting firm to do a valuation of the company's equity in case she decides to issue additional stock to raise capital; valuation came in at $18mm. What is Zelda's Zipper's TTM P/E ratio?
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