Use the Information for the Question(s)below

question 47

Essay

Use the information for the question(s)below.
During the most recent fiscal year,KD Industries had revenues of $400 million and earnings of $30 million.KD has filed a registration statement with the SEC for its IPO.Before it is offered,KD's investment bankers would like to estimate the value of the company using comparable companies.The investment bankers have assembled the following information based on data for other companies in the same industry that have recently gone public.In each case,the ratios are based upon the IPO price.
-Based upon the price/revenue ratio,what would be a reasonable value for KD?

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Definitions:

Elevated Lesion

A raised area on the skin's surface, which could be due to various health issues, including infections, inflammations, or tumors.

Pus

A thick, yellowish or greenish fluid composed of dead white blood cells, bacteria, and tissue debris, indicative of an infectious process.

Excretes

The process by which living organisms remove waste materials from their bodies, contributing to homeostasis and overall health.

Perspiration

The process of sweating, wherein the body releases moisture through the skin's sweat glands to cool itself.