b) Assume that you have been given an assignment by Nairobi Enterprises to estimate the value per share of its common stock using the multiples approach. Nairobi Enterprises is a private company engaged in manufacturing activities. You have been provided with the P/E- Ratios of three similar listed firms at the exchange.

COMPANY	P/E-RATIO
A	1.5
B	1.8
C	2.5

Extracts from recent financial statements shows that the company had a book value of debt of Sh. 2 million. The nominal value of equity was Sh. 10 million with par value of Sh. 5 per share. State any assumptions in your computations

Required:

Given that the average Earnings per Share for Nairobi Enterprises is Sh. 2.0, estimate the market value of Nairobi Enterprises.