Red Stapler Company Has a Balance Sheet Which Lists $85

question 29

Multiple Choice

Red Stapler Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders' equity. It has 1,400,000 common shares outstanding. The replacement cost of the assets is $115 million. Shares currently sell for $90. What is Red Stapler's market value per share?

• A) $1.68
• B) $2.60
• C) $32.14
• D) $60.71
• E) None of the options are correct.

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Definitions:

Autonomic Nervous System

The segment of the nervous system responsible for regulating automatic body processes such as cardiac rhythm, digestive functions, and breathing rate.

Self-indulgence

The act of gratifying one's own desires, impulses, or interests, often at the expense of broader considerations or duties.

Defence Mechanisms

Mental tactics employed subconsciously by people to shield themselves from stress and to deal with reality or preserve their self-perception.

Unpleasant Emotions

Feelings that are distressing or causing discomfort, such as sadness, anger, or fear.