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?

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?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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