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?

---

Definitions:

Disjunction

A logical operation that combines two or more statements in such a way that the resulting statement is true if at least one of the original statements is true.

Logic Circuit

An electronic circuit that uses logic gates to control the flow of electrical signals based on a set of rules.

Interpretation

The action of explaining the meaning of something or presenting one's conception of an idea, work, or phenomenon.

Truth Value

A characteristic determining the veracity of a statement or proposition as either true or false.