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: Cengage Learning
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Please give me true answer this financial accounting question

Estimate the value of a privately-held firm based on the following
information:
Stock price of a comparable firm = $25.00
Net income of a comparable firm = $30,000
Number of shares outstanding for the comparable firm = 15,000
Earnings per share (EPS) for the target firm = $4.00
a) $16.67
b) $25.00
c) $33.33
d) $40.00
e) $50.00
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Transcribed Image Text:Estimate the value of a privately-held firm based on the following information: Stock price of a comparable firm = $25.00 Net income of a comparable firm = $30,000 Number of shares outstanding for the comparable firm = 15,000 Earnings per share (EPS) for the target firm = $4.00 a) $16.67 b) $25.00 c) $33.33 d) $40.00 e) $50.00
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Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning