Tiger Golf Supplies has $34 million in earnings with 8 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 36. Assume there is an underwriting spread of 13.5 percent. What should the price to the public be?
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Tiger Golf Supplies has $34 million in earnings with 8 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 36. Assume there is an underwriting spread of 13.5 percent. What should the price to the public be?
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- Tiger Golf Supplies has $45 million in earnings with 8 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 35. Assume there is an underwriting spread of 11.7 percent.What should the price to the public be?Suppose that Papa Bell Inc. equity is currently selling for $41 per share, with 3.6 million shares outstanding. The firm also has 8000 bonds outstanding, which are selling at 95% of par. Assume Papa Bell was considering an active change to its capital structure so as to have a D/E ratio of 0.5. Which type of security (stocks or bonds) would the firm need to sell to accomplish this? How much would it have to sell? (Enter your answer in dollars not in millions. Do not round immendiage calculations and round your final answer to 2 decimal places.)Tiger Golf Supplies has $21 million in earnings with 6 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 27. Assume there is an underwriting spread of 7.8 percent. What should the price to the public be? (Do not round intermediate calculations and round your answer to 2 decimal places.)
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