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

question 2

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