Calculating a price from comparables easy a firm trading


Question: Calculating a Price from Comparables (Easy) A firm trading with a total equity market value of $100 million reported earnings of $5 million and book value of $50 million. This firm is used as a comparable to price an IPO firm with earnings per share of $2.50 and book value per share of $30 per share. Neither firm pays dividends. What per-share IPO price does the comparable firm imply?

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Finance Basics: Calculating a price from comparables easy a firm trading
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