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= 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) $10.00 B) $20.00 C) $30.00 D) $40.00 E) $50.00 Show your complete solution.

= 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) $10.00 B) $20.00 C) $30.00 D) $40.00 E) $50.00 Show your complete solution.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 66P
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= 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) $10.00 B) $20.00 C) $30.00 D) $40.00 E) $50.00 Show your complete solution.
Transcribed Image Text:= 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) $10.00 B) $20.00 C) $30.00 D) $40.00 E) $50.00 Show your complete solution.
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