Estimate the market value of one share of stock

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Reference no: EM13971004

The Charleston Company is a relatively small, privately owned firm. Last year the company had after-tax income of $20,000, and 15,000 shares were outstanding. The owners were trying to determine the 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 Charleston's stock. (ROUND YOUR ANSWER TO THE NEAREST 2 DECIMAL PLACES)

Reference no: EM13971004

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