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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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