Use the Table for the Question(s)below

question 54

Multiple Choice

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.
-What will be the IPO price per share?

• A)$3.40
• B)$20.25
• C)$33.33
• D)$33.75
• E)$60.00

Examine how social psychology explains behaviors in complex situations, such as compliance, aggression, prosocial behavior, and attitude change.

Understand the definition, examples, and characteristics of public goods.

Recognize the challenges and reasons why the market system does not readily produce public goods.

Comprehend the economic concepts of nonrivalry and nonexcludability in the context of public goods.

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Definitions:

Security Interest

A legal claim or lien on collateral that gives a lender the right to take property if a borrower defaults on their obligations.

Perfection

In legal and financial contexts, refinement is the process of securing an interest in collateral against third parties, often through public registration.

Security Agreement

A legal document that provides a lender a security interest in specified assets of the borrower as collateral for a loan.

Filing

The process of submitting documents to a specified authority or organization for official review or record-keeping.