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A. Calculate the P/E ratio of the comparable firm. B. Estimate the market value of the Target firm. C. If the Target Firm paid out

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A. Calculate the P/E ratio of the comparable firm. B. Estimate the market value of the Target firm. C. If the Target Firm paid out a dividend of $1.5/share, calculate the ratantian ratio Estimate the value of a privately- held firm based on the following information: total market value (or capitalization value) of a comparable firm = $200,000; net income of a comparable firm = $40,000; number of shares outstanding for the comparable firm = 20,000; net income for the Target firm = $15,000; and number of shares outstanding for the target firm = 10,000

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