Question
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
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
b. $20
c. $30
d. $40
e.$50
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
