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?

Understand the concept of ethical and moral dilemmas in professional environments.

Recognize the importance of self-esteem in ethical behavior and social responsibility.

Identify different ethical philosophies and their application in business decisions.

Describe the role of codes of ethics and their impact on organizational culture.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies by recognizing the investor's share of the investee's profits or losses.

Common Stock

Type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends or stock appreciation.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Fair Value

A reevaluation measure used to assess the worth of an asset or liability based on current market conditions, focusing on the price that would be received to sell the asset or needed to transfer the liability.