Determining the price on future investments


Question:

Tiger Golf Supplies has $15 million in earnings with 4 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 22. If there is an underwriting spread of 2.8 percent, what should the price to the public be?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references. Provide step by step solutions for the above question.

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Risk Management: Determining the price on future investments
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