Assume That a Firm Is Valued at $800 Million and Has

question 46

Multiple Choice

Assume that a firm is valued at $800 million and has 6 million shares of stock outstanding. This firm's stock should have a price of $____ per share.

• A) 6
• B) 80
• C) 133.33
• D) none of the above

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Definitions:

Best Efforts

A contractual obligation that requires one party to exert all possible efforts to fulfill the terms of the contract without guaranteeing a specific outcome.

UCC

The Uniform Commercial Code is an extensive collection of regulations that oversee commercial dealings within the United States.

Risk of Loss

The potential for an asset to decrease in value or for a financial loss to occur in a transaction.

Reimbursed

Repaid or compensated for expenses or losses incurred.