IPO Offer Price
Not what you're looking for?
Konawalski's Kustom Erdapfel Chips Inc, makes gourmet German Style potato chips. The company began operating in North Carolina three years ago and quickly grew. The company is now poised for national growth. Analysts call the company the next Krispy Kreme. The company pays a dividend of $0.10 per share. EPS are $0.50and analysts expect both earnings and dividends to grow at 20% per year for the next five years. The stock price is expected to increase in value by 70% over the next three years. If you believe that investors require a 20% rate of return on a stock of this risk what price would you recommend as the IPO price for Konawalski?
Purchase this Solution
Solution Summary
The solution discusses what price would you recommend as the IPO price for Konawalski.
Solution Preview
The P0 is the stock price, then over the next three years an investor is going to receive following payments:
Year 1: ...
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.