5. Are Heather’s expectations reasonable regarding control, licensing, valuation and exit strategy? - Calculation Step 1 calculate comparable company P/E multiple by using the Liz Claiborne IPO valuation IPO price = P/E multiple Trailing EPS
$ 19.00 = 9.60 $1.98
Step 2 $ 250,000 (1.50)2 = ROI = 562,500