Based on the Corporate Valuation Model,the Value of a Company's

question 24

Multiple Choice

Based on the corporate valuation model,the value of a company's operations is $1,200 million.The company's balance sheet shows $80 million in accounts receivable,$60 million in inventory,and $100 million in short-term investments that are unrelated to operations.The balance sheet also shows $90 million in accounts payable,$120 million in notes payable,$300 million in long-term debt,$50 million in preferred stock,$180 million in retained earnings,and $800 million in total common equity.If the company has 30 million shares of stock outstanding,what is the best estimate of the stock's price per share?

• A)$24.90
• B)$27.67
• C)$30.43
• D)$33.48

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Definitions:

Secure Base

A concept in attachment theory referring to the role of caregivers in providing a sense of security for children, allowing them to explore the world.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

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Activities or events that provide opportunities for gaining new knowledge, skills, attitudes, or values.

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Biological drive pertains to the innate impulses and motivations that direct human behavior, such as hunger, thirst, sexual desire, and the instinct for survival.