This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: David found a company and goes through the investment rounds shown below:RoundSourcePriceNumber of ... (Read 19 times)

jman1234

  • Hero Member
  • *****
  • Posts: 560
on: Jul 9, 2019
David found a company and goes through the investment rounds shown below:

RoundSourcePriceNumber of Shares
Series ASelf$0.50400,000
Series BAngel$1.00500,000
Series CVenture Capital$1.50300,000
Series DVenture Capital$2.25400,000

He decides to take the company public through an IPO, issuing 2 million new shares. Assuming that he successfully completes the IPO, the net income for the next year is estimated to be $8 million. His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses, which is 15.0. What will be the IPO price per share?
◦ $20.25
◦ $60.00
◦ $3.40
◦ $33.33
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jman1234 on Jul 9, 2019

Amiracle

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 45% of students answer this correctly


jman1234

  • Hero Member
  • *****
  • Posts: 560
Reply #2 on: Jul 9, 2019
Excellent


Amiracle

  • Sr. Member
  • ****
  • Posts: 334
Reply #3 on: Jul 9, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Three Mechanisms of Gene Transfer Found in Bacteria Three Mechanisms of Gene Transfer Found in Bacteria
Permafrost is found in much of Northern Canada Permafrost is found in much of Northern Canada
The cotton-top tamarin (Saguinus oedipus), also known as the Pinche tamarin, is a small New W The cotton-top tamarin (Saguinus oedipus), also known as the Pinche tamarin, is a small New W
The drum shown in the figure has a radius of 0.40 m and a moment of inertia of 2.3 kg m2about ... The drum shown in the figure has a radius of 0.40 m and a moment of inertia of 2.3 kg m2about ...
Identify the junction nodes in the circuit shown in Figure 21-1. Identify the junction nodes in the circuit shown in Figure 21-1.
Regions of the world where malaria is endemic are shown Regions of the world where malaria is endemic are shown
Video: Wound Cultures

For a complete list of videos, visit our video library