question archive Company D's IPO (initial public offering)

Company D's IPO (initial public offering)

Subject:FinancePrice: Bought3

Company D's IPO (initial public offering). just finished and the shares will be listed tomorrow. Companies A, B and C, which are in the same industry, are all listed and trade at a forward P/E (price-to-earnings) multiple of 12x.

If company D expects to have earnings of $35 million in the next twelve months and shares outstanding are 10 million, what would you expect company D's share price to be when it starts trading based on comparable analysis?

pur-new-sol

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