Estimate the Value of a Privately-Held Firm Based on the Following

question 14

Multiple Choice

Estimate the value of a privately-held firm based on the following information: stock price of a comparable firm = $20.00; net income of a comparable firm = $20,000; number of shares outstanding for the comparable firm = 10,000; and earnings per share for the target firm = $3.00.

• A) $10.00
• B) $20.00
• C) $30.00
• D) $40.00
• E) $50.00

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