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:

Cash Budget

A financial tool used by businesses to plan for their cash inflows and outflows over a specific period to manage liquidity.

Budgeted Disbursements

Forecasted cash outflows for a specific period, often part of a company's cash budget and crucial for managing liquidity.

Desired Balance

The targeted amount of funds or resources a company or individual aims to have available at a certain point in time for a specific purpose.

Excess (Deficiency)

The difference between what was budgeted or expected in financial projections and the actual amount received or spent, indicating a surplus or shortfall.