Estimate the Value of a Privately-Held Firm Based on the Following

Estimate the value of a privately-held firm based on the following information: total market value or capitalization value) of a comparable firm = $200,000; net income of a comparable firm = $40,000; number of shares outstanding for the comparable firm = 20,000; net income for the target firm = $15,000; and number of shares outstanding for the target firm = 10,000.

A) $5.00
B) $7.50
C) $10.00
D) $12.50
E) $15.00