Kiromi Inc. has reported income after tax of $3.2 million. It has 500,000 preferred shares outstanding at a value of $21.30 each and paying a dividend of $1.40. The company has one million common shares outstanding currently trading at $48.00 each. Breeson-Lee is not traded on the stock exchange but is comparable to Kiromi. If Breeson-Lee's year-end earnings are $2.8 million, using P/E ratios as a guide, what is the company's market value?

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The Answer of Kiromi Inc. has reported income after tax of $3.2 million. It has 500,000 preferred shares outstanding at a value of $21.30 each and paying a dividend of $1.40. The company has one million common shares outstanding currently trading at $48.00 each. Breeson-Lee is not traded on the stock exchange but is comparable to Kiromi. If Breeson-Lee's year-end earnings are $2.8 million, using P/E ratios as a guide, what is the company's market value?