Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 24, 2024

Determine the market value of a comparable firm based on the following information: value of target firm = $4,000,000; net income of target firm =

Determine the market value of a comparable firm based on the following information: value of target firm = $4,000,000; net income of target firm = $200,000; and net income of comparable firm = $500,000.

a. $4 million

b. $7.5 million

c. $10 million

d. $12.5 million

e. $15 million

Please Show Work and Eplxain!

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

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

8th Edition

0814406807, 978-0814406809

More Books

Students also viewed these Finance questions

Question

★★★★★

Brad owns a successful corporation that has substantial earnings and profits. During the year, the following payments were made by the corporation: a. Salary of $250,000 to Brad. Officers in other...

Answered: 1 week ago

Question

★★★★★

identify and defi ne six different principles of ethical reasoning

Answered: 1 week ago

Question

★★★★★

1. Which one of the following activities would NOT be consistent with a constructivist environment? A. Students are given frequent opportunities to engage in complex, meaningful, problem-based...

Answered: 1 week ago

Question

★★★★★

Gaseous hydrogen at 10 bars and 27C is stored in a 100-mm-diameter spherical tank having a steel wall 2 mm thick. The molar concentration of hydrogen in the steel is 1.50k mol/m3 at the inner surface...

Answered: 1 week ago

Question

★★★★★

Scotch inc has prepared the operating budget for the first quarter of the year . The company forecast sales of $50000 in January , $60000 in February, and $70000 in March. Variable and fixed expense...

Answered: 1 week ago

Question

★★★★★

1 1 - 1 NPV Project L requires an initial outlay at t = 0 of $ 6 5 , 0 0 0 , its expected cash inflows are $ 1 2 , 0 0 0 per year for 9 years, and its WACC is 9 % . What is the project s NPV ?

Answered: 1 week ago

Question

★★★★★

1 2 Chang Corporation sells products for $120 each that have variable costs of $80 per unit. Chang's 3 annual fixed cost is $720,000. $120 $80 $720,000 4 Required Use the per-unit contribution margin...

Answered: 1 week ago

Question

★★★★★

9. Effects of portfolio size on portfolio risk The following graph plots portfolio risk against the size of the portfolio as measured by the number of stocks in the portfolio. (Hint: Hover the mouse...

Answered: 1 week ago

Question

★★★★★

MGT-445: Ethical & Legal Business Concepts In your Bible, read: 2 Corinthians 8:7 Colossians 3:23-24 Navigate to the threaded discussion and use clear, critical thinking to discuss the following: How...

Answered: 1 week ago

Question

★★★★★

While the operational experience of basic branch service members is critical to moving the work of CDIDs forward, the process expertise provided by __________ is critical. A. Joint Staff and General...

Answered: 1 week ago

Question

★★★★★

In independent random samples of 15 men and 15 women, the numbers of minutes spent in front of an electronic device are given by the back-to-back stemplot below: Men Women H 12 35 8 13 4 14 15 2367...

Answered: 1 week ago

Question

★★★★★

How do the groups you listed affect the way you think, feel, and act in your society?

Answered: 1 week ago

Question

★★★★★

What is your role within these groups?

Answered: 1 week ago

Question

★★★★★

What are your initial impressions when you think about people from different cultures?

Answered: 1 week ago

Previous Question Next Question