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Author Question: David found a company and goes through the investment rounds shown below:RoundSourcePriceNumber of ... (Read 41 times)

jman1234

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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


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Marked as best answer by jman1234 on Jul 9, 2019

Amiracle

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