Reynolds Construction's Value of Operations Is $750 Million Based on the Corporate

question 16

Multiple Choice

Reynolds Construction's value of operations is $750 million based on the corporate valuation model.Its balance sheet shows $50 million of short-term investments that are unrelated to operations,$100 million of accounts payable,$100 million of notes payable,$200 million of long-term debt,$40 million of common stock (par plus paid-in-capital) ,and $160 million of retained earnings.What is the best estimate for the firm's value of equity,in millions?

• A) $429
• B) $451
• C) $475
• D) $500
• E) $525

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