Page 1 of 1
Intro You founded a social media company, called AllTogether, that was a startling success and is now ready for an IPO.
Posted: Thu May 05, 2022 8:29 am
by answerhappygod
- Intro You Founded A Social Media Company Called Alltogether That Was A Startling Success And Is Now Ready For An Ipo 1 (51.64 KiB) Viewed 46 times
Intro You founded a social media company, called AllTogether, that was a startling success and is now ready for an IPO. The company had sales of $55 million and net income of $7.7 million in its most recent financial year. Your investment bankers collected the following information from your competitors at the time of their IPO: Company P/E ratio Price/Sales ratio Facebook 74.4 18.2 Google 26.6 5.8 LinkedIn n/a 14.7 Twitter n/a 21.4 Your company will have 11 million shares outstanding after the IPO. Part 1 What should be the offer price based on P/E ratios? 1+ decimals Submit Part 2 What should be the offer price based on Price/Sales ratios? 0+ decimals Submit Attempt 1/10 for 9 pts. Attempt 1/10 for 9 pts.