Use the Table for the Question(s)below

question 82

Multiple Choice

Use the table for the question(s) below.
The founders and owners of a private company have funded it through the following rounds of investment:
The owners decide to take the company public through an IPO,issuing 1 million new shares.Assuming that they successfully complete the IPO,the net income for the next year is estimated to be $5 million.The price of shares is set using average price-earnings ratios for similar businesses of 17.0.
-What will be closest to the IPO price per share?

• A)$12
• B)$21.25
• C)$22
• D)$36
• E)$45

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Definitions:

Diversity Training

A training program aimed at increasing participants' cultural awareness, knowledge, and skills to help create a more inclusive work environment.

Multicultural Organization

An organization that values and utilizes the diverse cultural backgrounds of its members, often reflecting a wide variety of perspectives and practices.

Foreign Language

A language used by individuals who are not native speakers, often learned for the purposes of communication in areas where the native language is different.

Informal Networks

The unofficial relationships and channels of communication that exist within an organization, allowing for information flow outside formal organizational structures.