Use the Table for the Question(s)below

question 82

Multiple Choice

Use the table for the question(s) below.
The founders and owners of a private company have funded it through the following rounds of investment:
The owners decide to take the company public through an IPO,issuing 1 million new shares.Assuming that they successfully complete the IPO,the net income for the next year is estimated to be $5 million.The price of shares is set using average price-earnings ratios for similar businesses of 17.0.
-What will be closest to the IPO price per share?

• A)$12
• B)$21.25
• C)$22
• D)$36
• E)$45

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Definitions:

Audiovisual Aids

Tools that utilize both sight and sound to enhance the learning or presentation experience, such as slides, films, or music.

Stress-relief Exercise

Physical activities designed to reduce tension and improve mental well-being.

Eye Contact

The act of looking directly into another person's eyes, which can convey a range of emotions, signal attention or respect, and facilitate non-verbal communication.

Natural Gestures

Movements or signals made with the body that are instinctive or spontaneously generated, often used in communication.