CORRECT ANSWER C. THE ESTIMATED PER SHARE VALUE OF CLARK’S COMMO...
72.
Correct answer c. The estimated per share value of Clark’s common stock is $15.00 as
calculated below.
Estimated value per share =
(Net income ÷ Shares outstanding) x Price/earnings ratio
=
($3,750,000 ÷ 3,000,000) x 12
=
$15.00