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please I need to see how to solve it 1. Determine the net income of a Target firm based on the following information: A comparable

image text in transcribed please I need to see how to solve it
1. Determine the net income of a "Target" firm based on the following information: A comparable firm issued a quarterly dividend of S.25 and had a Dividend payout ratio of 80% with 100,000 shares outstanding and a stock price of $25/share. The Target has a valuation of $3,600,000 and 1,000,000 outstanding shares. a. $180,000 b. $150,000 c. $300,000 d. $200,000 e. $125,000 2. Estimate the value of a privately-held firm based on the following information: stock price of a comparable firm = $30.00/share; net income of a comparable firm = $30,000; number of shares outstanding for the comparable firm = 10,000; and earnings per share for the target firm - $2.00. a. $10.00 b. $20.00 c. $30.00 d. $40.00 e. $50.00 3. Estimate the value of a privately-held firm based on the following information: total market value (or capitalization value) of a comparable firm = $400,000; net income of a comparable firm = $80,000; number of shares outstanding for the comparable firm = 20,000; net income for the target firm - $30,000; and number of shares outstanding for the target firm = 10,000. a. $5.00 b. $7.50 c. $10.00 d. $12.50 e. $15.00 4. Determine the market value of a comparable" firm based on the following information: value of target firm = $6,000,000; 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

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