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You have recently received a takeover offer for your privately held ball bearing manufacturing company. This past year was much like most other years and
You have recently received a takeover offer for your privately held ball bearing manufacturing company. This past year was much like most other years and resulted in $250,000 of net income for the firm. Your nearest competitor Global Bearing Inc. is currently trading for $50 per share and has an EPS of $10 on 12 million shares outstanding. Using Global Bearing as a benchmark, what would be the best estimate of a fair market price for your company?
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