Business, 04.03.2021 20:00 Lukeadams

Bumble Company is planning an IPO and management is meeting with their investment bankers to discuss the pricing strategy for this first time offering of the company's shares to the public. Bumble's CFO has spent a lot of time researching the price to earnings per share ratios (P/E Ratios) of several competitor companies, including Match which currently trades at $100 per share. The competitor P/E ratios range from 25-30x the next year's forecasted earnings per share. The CFO is forecasting Bumble's next year's earnings per share will be $3.20. He expects the Investment Bank to discuss a price range for the Bumble IPO of ...? a. $100-$150 per share
b. $50-$100 per share
c. $80-$96 per share
d. Not enough information

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Bumble Company is planning an IPO and management is meeting with their investment bankers to discuss...