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4. Based on the corporate valuation model, the val...

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4. Based on the corporate valuation model, the value of a company?s operations is $900 million. Its balance sheet shows $70 million in accounts receivable, $50 million in inventory, $30 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of the stock?s price per share? a. $23.00 b. $25.56 c. $28.40 d. $31.24 e. $34.36 Please explain your answer

 

Paper#5658 | Written in 18-Jul-2015

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