Estimate the market value of one share


X Co. is a relativel small, privately owned firm. Last year the company had after-tax income of $15,000, and 10,000 shares were outstanding. The owners were trying to determine the equilibrium market value for the stock, prior to taking the company public. A similar firm which is publicly traded had a price/earnings ratio of 5.0. using only the information given, estimate the market value of one share of X Co. stock.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Estimate the market value of one share
Reference No:- TGS055246

Expected delivery within 24 Hours