Honore’s earned net income $337,000 last year. It has an estimated 70,000 shares of stock outstanding, but they are not actively traded. Gila Corp., which is a similar firm with similar growth opportunities, has 185,000 shares of stock outstanding with a market price of $32.20 per share. Gila’s earnings per share last year was $1.60. What is the estimated value of Honore’s? Multiple Choice a)$3,723,125 b) $1,275,135 c) $8,906,429 d) $6,782,125 e) $5,957,000

Honore’s earned net income $337,000 last year. It has an estimated 70,000 shares of stock outstanding, but they are not actively traded. Gila Corp., which is a similar firm with similar growth opportunities, has 185,000 shares of stock outstanding with a market price of $32.20 per share. Gila’s earnings per share last year was $1.60. What is the estimated value of Honore’s? Multiple Choice a)$3,723,125 b) $1,275,135 c) $8,906,429 d) $6,782,125 e) $5,957,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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