You are considering investing in a private company that is owned by a friend of yours You have read through the companys financial statements and believe that they are reliable Multiples of similar publicly traded companies in the same industry suggest that the value of a share of stock in your fri...

Shareholders in a private company may have to spend considerable resources in mon ...

You are considering investing in a private company that is owned by a friend of yours. You

Question:

You are considering investing in a private company that is owned by a friend of yours. You have read through the company’s and believe that they are reliable. Multiples of similar publicly traded companies in the same industry suggest that the value of a share of stock in your friend’s company is $12. Should you be willing to pay $12 per share?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...