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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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NNADVOKAT [17]

Answer:

aye congrats on passing!! im doing my finals rn im super stressed lol

8 0
3 years ago
The average cost of a single sales call to a potential b2b buyer in the u.s. is expensive and could cost about:
Colt1911 [192]
<span>A single sales call to a potential B2B buyer in the United States could cost about $400. A B2B sales call is a business to business sales call. The closing of a sale can be hit or miss, but it is said that any contact with the buyer can be helpful later.</span>
5 0
3 years ago
In June 1985, Joseph Marcantuone and Robert Gieson purchased property located in East Orange, New Jersey. At the time of purchas
sattari [20]

Answer:

The answer would be All of the above.

Explanation:

All the above mentioned parties are related with discharge of the chemical and are liable to get the clean up done. Marcantuone and Gieson are liable as they are the owners, Lessees of the dry cleaning establishment are liable as they are the ones who operated on the effected land and Previous owners under whose ownership the lessees had taken the land on lease for a dry cleaning property.

All the parties are liable for the clean up as well as the damage occured post the clean up as well as per the law.

6 0
3 years ago
When the price of Milk is $5 per gallon consumers demand 1,000 boxes of Boo Berry Cereal. When the price of milk increases to $5
alexandr1967 [171]

Answer: a. 10%

b. -30%

Explanation:

a. What is the percentage change in the price of milk?

Old price = $5.00

New price = $5.50

Percentage change = ($5.50 - $5.00)/$5.00 × 100

= 0.50/5.00 × 100

= 1/10 × 100

= 10%

Percentage change on price = 10%

b. What is the percentage change in the quantity demanded for Boo Berry Cereal?

Old quantity = 1000

New quantity = 700

Percentage change = (700 - 1000)/1000 × 100

= -300/1000 × 100

= -30%

The percentage change in the quantity demanded for Boo Berry Cereal is -30%.

6 0
3 years ago
Amazon, the largest online retailer, has experimented with physical stores and recently bought Whole Foods. Whole Foods has almo
denpristay [2]

Answer:

to survive today, organizations need to be present in both the online and physical markets

Explanation:

So far Amazon has dominated the online space when it comes to buying products and services. But the scenario in the question makes it clear that having only one channel open to customers (online) is not sufficient.

It is necessary to diversify by having physical stores in addition to online stores.

Some consumers for example will want to examine what they are buying before paying, others will not have the patience to wait for delivery of goods. So the physical store will serve these segments of customer's.

5 0
3 years ago
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