Projected 2013 IPO’s

Expected/ Number/ Projected/ Projected/

Company IPO Price of Shares Revenue Value

Hubspot $15.00 7.1 million $216 million $670 million

AirAsia $15.00 6.6 million $375 million $950 million

Box $22.00 17.2 million $280 million $625 million

DropBox $38.00 9 million $85 million $220 million

Twitter $17.00 6 million $87 million $189 million

Hulu $9.00 12 million $230 million $322 million

Chuy’s $13.00 10 million $165 million $245 million

Pinterest $13.00 15 million $75 million $130 million

FourSquare $10 12.5 million $91 million $189 million

Develop a management style report answering the following questions and showing work on a separate page.

1. Develop an estimate regression equation with the number of shares selling as the independent variable and the IPO price as the dependent variable.
2. At the .05 level of significance, is there a significant relationship between the two variables.
3. Does the estimated regression equation provide a good fit.
4. Use the estimated regression equation to predict the expected price for a firm considering an IPO offering 7 million shares.
5. Develop a scatter diagram with projected revenue on the horizontal axis and projected value on the vertical axis. Are there any outliers or influential observations in the data?
6. Develop an estimated regression equation that can be used to predict projected company value related to projected annual revenue of a company.
7. Use residual analysis to determine whether any outliers or influential observations are present. Summarize findings and conclusions.
8. Which 2 company’s offer the best value for the investor and why?

Price: $14.48

Solution: The downloadable solution consists of 9 pages, 548 words and 11 charts.
Deliverable: Word Document