Value of Broadway-Brooks Inc

question 9

Multiple Choice

value of Broadway-Brooks Inc.'s operations is $900 million, based on the corporate valuation model 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

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the higher actual price they receive, representing their economic benefit.

Trade

Trade involves the exchange of goods or services between parties, which can be international (between countries) or domestic (within a country).

Termination

The involuntary dismissal of an employee.

Human Capital

The collective skills, knowledge, and expertise that employees bring to their workplace, contributing to its value and performance.