The Yarn Outlet Has Net Income of $87,400 for the Year

Multiple Choice

The Yarn Outlet has net income of $87,400 for the year with 6,500 shares of stock outstanding.Big Knitter is a similar firm with similar growth opportunities that has 8,400 shares of stock outstanding with a market price of $9.34 a share and earnings per share of $.86.What is the estimated value of the Yarn Outlet?

A) $1,016,279
B) $837,040
C) $1,142,105
D) $751,620
E) $949,205