12. the founders and owners of a private company have funded it through the following rounds of investment: round source price number of shares series a self $1.00 200,000 series b angel $1.00 300,000 series c venture capital $1.25 400,000 the owners decide to take the company public through an ipo, issuing 1 million new shares. assuming that they successfully complete the ipo, the net income for the next year is estimated to be $5 million. the price of shares is set using average price-earnings ratios for similar businesses of 17.0. what will be the ipo price per share?

A privately held corporation will sell its shares in an initial public offering (IPO) to the general public. Before initiating an IPO, the price of the shares or stocks to be sold must be decided. Either the book building method or a fixed cost approach can be used.

You can get in on the "ground floor" of a business with significant growth potential by investing in an IPO. Your opportunity for quick profit in a short amount of time may be an IPO. Long-term wealth growth could also be aided by it.

Given:

Net income = $ 50,00,000

Earning per share = 50,00,000/19,00,000 = $2.63

Price Earning ratio = Mkt price per share / Earning per share

17 = MPS/2.63

MPS = 45

IPO price per share = $45

To learn more about IPO price per share, visit:

https://brainly.com/question/13074222

#SPJ4