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Jason Inc: estimate market value of stock

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Jason Inc had after-tax income of $15,000 with 10,000 stock shares outstanding. The two owners are trying to find the equilibrium market value for the stock prior to going public. A similar company had a price/earnings ratio of 5.0. Estimate the market value of Jason stock. Please show formula and example of calculation.

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Jason Inc had after tax income of 15,000 with 10,000 shares outstanding. The two owners are trying to find the equilibrium market value for the stock prior to going ...

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