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

Assess special order decisions, including profitability and impact on normal operations.

Evaluate make or buy decisions based on cost analysis and other relevant factors.

Analyze additional business considerations based on variable and fixed costs.

Understand relevant and irrelevant costs for decision making.

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Definitions:

Media Outlets

Organizations that disseminate news, information, entertainment, and other contents through various distribution channels.

National Audience Reach

The extent to which content, such as a broadcast or publication, is accessible or viewed by people across a nation.

Watchdog Function

The role of the media or other entities in monitoring governmental activities and alerting the public to wrongdoing or inefficiency.

Media Ownership

Pertains to the individuals or corporations who own controlling shares or interests in media companies, influencing what content is presented to the public.