Bavarian Sausage's Enterprise Value Is $75,000,000,the Market Value of Its

question 82

Multiple Choice

Bavarian Sausage's enterprise value is $75,000,000,the market value of its debt is $23,000,000 and the market value of its preferred stock is $5,000,000.If the company has 3,500,000 shares outstanding,what should be Bavarian Sausage's stock price?

• A) $14.86
• B) $21.43
• C) $13.43
• D) $6.57

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Definitions:

Trust

Reliance on the integrity, strength, ability, or surety of a person or thing; confidence.

Logrolling

A negotiation strategy where two parties exchange favors or support for each other’s proposals to achieve mutual benefit.

Preferences

Individual likes or choices, often reflecting personal values or desires.

Positive Problem Solving

An approach to conflict resolution that focuses on identifying and addressing the underlying causes of a problem in a constructive manner.