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Use the table for the question(s) below.
David founds a company and goes through the investment rounds shown below:
He decides to take the company public through an IPO,issuing 2 million new shares.Assuming that he successfully completes the IPO,the net income for the next year is estimated to be $8 million.His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses,which is 15.0.
-An IPO is offered at $12.50 per share for 4 million shares.The IPO underwriters had a spread of 6.5%.What was the total fee paid to the underwriters?
Free Trade
Global trade allowed to proceed without any tariffs, quotas, or limitations, following its natural flow.
Wagons
A four-wheeled vehicle typically used for transporting goods or passengers, historically drawn by animals.
Consumers
Individuals or entities that purchase goods or services for personal use.
Tariff
A governmental policy tool used to control the flow of international trade through taxes on imports and exports.
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