
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Transcribed Image Text:Eldora Systems is a privately-held firm. You are asked to
estimate its value using market data from a comparable
public firm. The comparable firm has a stock price of
$32.00, net income of $48,000, and 12,000 shares
outstanding. Eldora Systems has an earnings per share
(EPS) of $4.00.
What is the estimated value per share of Eldora Systems?
A) $12.00
B) $16.00
C) $20.00
D) $32.00
E) $28.00
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