Based on the Corporate Valuation Model, Morgan Inc

question 24

Multiple Choice

Based on the corporate valuation model, Morgan Inc.'s value of operations is $300 million. The balance sheet shows $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) $12.00
• B) $12.64
• C) $13.30
• D) $14.00
• E) $14.70

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