Based on the Corporate Valuation Model,Bizzaro Co

question 31

Multiple Choice

Based on the corporate valuation model,Bizzaro Co.'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.Bizzaro 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

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Definitions:

Working Memory Capacity

The amount of information that an individual can hold in mind and manipulate for a short period.

Executive Control System

The set of cognitive processes and mental skills that help an individual plan, monitor, and successfully execute their goals.

Cognitive Abilities

Mental capabilities including reasoning, problem solving, planning, abstract thinking, complex idea comprehension, learning quickly, and learning from experience.

Working Memory Capacity

Refers to the amount of information that can be held in working memory at one time, which plays a critical role in reasoning, decision-making, and behavior.