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