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ryzh [129]
3 years ago
15

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 $9 million. His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses, which is 14. What will be the IPO price per share
Business
1 answer:
Salsk061 [2.6K]3 years ago
4 0

Answer:

$36.79

Explanation:

Calculation to determine What will be the IPO price per share

First step is to calculate the Cumulative shares

Cumulative shares = 375,000 + 400,000 + 250,000 + 400,000 + 2 million

Cumulative shares = 3.425 million

Now let calculate the IPO price

IPO price = $14 × $9 million / 3.425 million

IPO price= $36.79

Therefore What will be the IPO price per share is $36.79

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brainly Stuart Manufacturing Company was started on January 1, year 1, when it acquired $89,000 cash by issuing common stock. St
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Answer:

Stuart Manufacturing Company

Assets = $107,200

Explanation:

a) Data and Calculations:

Cash Account

Common stock $89,000

Furniture            (32,000)

Equipment         (40,000)

Salaries               (12,000)

Wages                (21,000)

Raw materials   (26,000)

Sales                   72,000

Cash balance  $30,000

Inventory:

Cost = $26,000

Units produced = 10,000 units

Cost per unit = $2.60 ($26,000/10,000)

Cost of goods sold = 8,000 * $2.60 = $20,800

Ending inventory = 2,000 * $2.60 = $5,200

Sales Revenue = 8,000 * $9 = $72,000

Assets:

Cash                     $30,000

Ending inventory     5,200

Furniture               32,000

Equipment            40,000

Total                  $107,200

b) An asset is something that brings in future cash flows to the business entity.  It is made up of Cash and Cash Equivalents, Inventories, Property, Plant, Equipment, and other business investments.  Assets are funded from finance provided by creditors and the equity owners, and they generate economic values.

5 0
3 years ago
David bought a pickup truck to transport his equipment on weekend fishing trips. He also bought a trailer for his lawn maintenan
trasher [3.6K]

Answer:

B2C and B2B, respectively.

Explanation:

The pickup that David bought to transport equipment on weekend fishing trips should be considered a business to consumer (B2C) transaction David will use it for recreational activities.

The trailer that David bought to transport his lawn maintenance equipment should be considered a business to business (B2B) transaction David will use it for his lawn maintenance business.

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3 years ago
Which workplace trait means fulfilling your commitments in time or in advance?
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I believe the answer is Time management
6 0
3 years ago
The business structure you choose as a step for starting your new business affects the following?
pshichka [43]

Answer:

Define Yourself- Finding your Business Niche. Identify your interests and passions. Identify problems you can solve. Research your competition. ...

Test your idea.

Defining your Business – Branding. Identify your specific audience. Establish business processes.

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2 years ago
Trade between individuals and between nations leads to: Trade between individuals and between nations leads to: higher product p
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Answer:

The correct answer is B.

Explanation:

Trade between individuals and between nations leads to: Increased Specialization

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