The Yarn Outlet Has Net Income of $42,000 for the Year

The Yarn Outlet has net income of $42,000 for the year with 12,000 shares of stock outstanding.Big Knitter is a similar firm with similar growth opportunities and it has 7,000 shares of stock outstanding with a market price of $13.30 a share and earnings per share of $.95.What is the estimated value of the Yarn Outlet?

A) $399,000
B) $737,040
C) $442,105
D) $151,620
E) $588,000