danielcole
New member
- Joined
- Apr 10, 2012
- Messages
- 2
Tiger Golf Supplies has $18 million in earnings with 4 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 32. Assume there is an underwriting spread of 7.0 percent. |
What should the price to the public be? --------- I'm not sure where to start here. I thought it would be 18m*32 / 4m and then a 7% increase on price for the public. Any hints? Thanks in advance. |