Determine the Market Value of a Comparable Firm Based on the Following

question 31

Multiple Choice

Determine the market value of a comparable firm based on the following information: value of the target firm = $4,000,000; net income of the target firm = $200,000; and net income of the comparable firm = $500,000.

• A)$15 million
• B)$7.5 million
• C)$10 million
• D)$12.5 million

---

Definitions:

Social Movement

A collective effort by a large group of people aiming to promote, enact, or resist social change, often outside of institutionalized political frameworks.

Breakdown Theory

A theory suggesting that social and normative structures break down under certain circumstances, leading to social disorder or change.

Power Balance

The distribution of power among countries or groups in a manner that no single entity can completely dominate others.

Social Movements

Collective efforts by groups of people to drive social change or resist social policies, often centering around specific issues or causes.