Determine the net income of a “comparable” firm based on the following information: value of target firm = $8,000,000; net income of target firm = $400,000; stock price of “comparable” firm = $60.00; and 600,000 shares of stock outstanding for the comparable firm.

Answer rating: 100% (QA)

To determine the net income of a comparable firm we can use the pricetoearnings PE ratio method ... View the full answer