Calculation the price and ratio method

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Reference no: EM132195113

You have a business you are considering to sell. There are several ways to determine one firm’s worth. Based on the following data, which method would merit you most for your business.

Your current stock is 25.00 per share

2016 annual profits were $500,000.

There are about 20,400 outstanding shares of stock.

Average net income over five years $95,000

Your stock as earned $5 this past year, and

Consider in this calculation the Price/Ratio Method, outstanding share method, and conservative rule of thumb. Show your work for each of these methods and identify, based on your work, which method yield you most for your business.

Reference no: EM132195113

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