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:

Skills

The abilities and expertise acquired through training or experience that enable an individual to perform tasks effectively.

Natural Rate

The level of unemployment or interest that exists when an economy is balanced, not affected by short-term fluctuations or cyclical, structural factors.

Price Level

The combined average cost of all goods and services manufactured within the economy.

Deflation

A decrease in the general price level of goods and services, often indicating an economy in contraction.