What should the price to the public be
Problem
Solar Energy Corp. has $8 million in earnings with three million shares outstanding. Investment bankers think the stock can justify a P/E ratio of 25. Assume the underwriting spread is 5 percent.
What should the price to the public be?
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Solar Energy Corp. has $8 million in earnings with three million shares outstanding. Investment bankers think the stock. What should the price to the public be?
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