Based on the following information, use the market-based relative valuation approach to determine the target firms price per share.

The comparable firm:

Total market value of the common stock: $3,500,000

Total earnings: $5,000,000

The target firm:

Total earnings: $3,000,000

Number of shares outstanding: 600,000

Select one:

a. $3.5

b. $4.0

c. $2.5

d. $3.0