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:

Surgical Site

The specific area on the body where a surgical procedure is performed, needing careful preparation and management to prevent infection.

Reservoir Host

An animal, an insect, or a human whose body is susceptible to growth of a pathogen.

Cycle Of Infection

The process by which an infectious agent passes from an infected host to a susceptible host, potentially causing disease.

Congenital Infection

An infection present at birth, often passed from mother to child during pregnancy, birth, or immediately after.