Based on the Corporate Valuation Model,the Total Corporate Value of Chen

question 72

Multiple Choice

Based on the corporate valuation model,the total corporate value of Chen Lin Inc.is $900 million.Its balance sheet shows $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 its stock price per share?

• A)$22.03
• B)$24.48
• C)$27.20
• D)$29.92
• E)$32.91

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