A client would also like you to estimate the value of a private company in which she has invested. The company has $1\mathrm{.}5$ million shares of common stock outstanding. You and client have discussed the earnings history and the outlook for future earnings. You agree that for valuation purposes you will use trailing $4$ quarters earnings per share of $$5.$ Your research indicates that the Price Earnings Ratio for comparable publicly traded companies is $18.$ Using the PE benchmark approach, what

A$.).$$$90,000,000$

B$.)$ $$225,000,000$

C$.)$ $$150,000$

D$.)$ $$135,000,000$ is the value of the company?

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