Determine the net income of a "comparable" firm based on the following information: value of target firm = $4,000,000; net income of target firm = $200,000; stock price of "comparable" firm = $30.00; and 300,000 shares of stock outstanding for the comparable firm.
a. $450,000 The answer should be "a" but how do I get to this number?
b. $500,000
c. $550,000
d. $600,000
e. $700,000