Question
6. Estimate the value of a privately-held firm based on the following information: total market value (or capitalization value) of a comparable firm = $400,000;
6. Estimate the value of a privately-held firm based on the following information: total market value (or capitalization value) of a comparable firm = $400,000; net income of a comparable firm = $80,000; number of shares outstanding for the comparable firm = 20,000; net income for the target firm = $30,000; and number of shares outstanding for the target firm = 10,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investments
Authors: Zvi Bodie
12th Edition
1260819426, 9781260819427
