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Estimate the value of a privately-held firm based on the following information: stock price of a comparable firm = $20.00; net income of a comparable

Estimate the value of a privately-held firm based on the following information: stock

price of a comparable firm = $20.00; net income of a comparable firm = $20,000; number

of shares outstanding for the comparable firm = 10,000; and earnings per share for the

target firm = $3.00.

A. $10.00

B. $20.00

C. $30.00

D. $40.00

E. $50.00

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