Based on the Corporate Valuation Model, Hunsader's Value of Operations

question 16

Multiple Choice

Based on the corporate valuation model, Hunsader's value of operations is $300 million.The balance sheet shows $20 million of short-term investments that are unrelated to operations, $50 million of accounts payable, $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity.The company has 10 million shares of stock outstanding.What is the best estimate of the stock's price per share?

• A)$13.72
• B)$14.44
• C)$15.20
• D)$16.00
• E)$16.80

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