Use the Information for the Question(s)below

question 9

Multiple Choice

Use the information for the question(s) below.
Kinston Enterprises has no debt and a debt obligation of $47 million that is due now.The market value of Kinston's assets is $102 million,and the firm has no other liabilities.Assume that capital markets are perfect and that Kinston has 5 million shares outstanding.
-Kinston's current share price is closest to:

• A)$20.40.
• B)$9.40.
• C)$11.00.
• D)$10.00.

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Definitions:

Equitable Remedy

A legal solution given by a court that requires a party to act or refrain from acting, rather than monetary compensation.

Reformation

An equitable remedy granted by a court to correct or "reform" a written contract so that it reflects the true intentions of the parties.

Imperfectly Expressed

Describes an idea, thought, or statement that has not been articulated clearly or accurately.

Shrink-Wrap Agreement

A type of contract or terms of service that is packaged within a product's packaging, considered agreed upon when the package is opened.