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:

Third-Party Conflict Resolution

A process where an external party is involved to help resolve a dispute or conflict between two other parties.

Conflict

A situation or process in which individuals or groups have opposing interests, values, or goals, which can lead to disagreement or confrontation.

Negatively Affected

Being impacted in an adverse or detrimental manner, often resulting in decreased performance or well-being.

Constructive Conflict

The positive and productive resolution of differences and disagreements that contributes to the goals and success of a group or organization.