Assume you have operated your business for 20 years. Sales for the most recent fiscal year were $15,000,000. Net income for the most recent fiscal year was $2,000,000. Your book value is $12,500,000. A similar company recently sold for the following statistics:

Multiple of Sales: 1.2x

Multiple of Net Income: 8x

Multiple of Book Value: 0.7x

What is an appropriate range of value for your company?

If you know that your company has future investment opportunities that are far more profitable than the company above, what does that say about your companys likely valuation from section (a)?