The Charleston Company is a relatively small, privately owned firm. Last year the company had after-tax income of $15,000, and 10,000 shares were outstanding. The owners were trying to determine the equilibrium market value for the stock, prior to taking the company public. A similar firm that is publicly traded had a price/earning per share ratio of 5.0. Using only the information given, estimate the market value of one share of Charleston's stock. [Hint: Earning per share - After tax income /Shares 14. a. $10.00 b. 7.50 c. 5.00 d. 2.50