A private company that designs manufactures and distributes


A private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $325M and earnings of $15M. Detox company has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year was 21.2 and 0.9 respectively.

 

Assuming Detox will issue 20M shares and using both ratios, estimate the possible range of the IPO price for Detox Company.

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Financial Accounting: A private company that designs manufactures and distributes
Reference No:- TGS01002917

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