Based on the Corporate Valuation Model, the Value of Weidner

question 2

Multiple Choice

Based on the corporate valuation model, the value of Weidner Co.'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 Weidner 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
• E) $36.82

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Definitions:

730 Nm

A wavelength of light in the near-infrared spectrum, often used in photosynthesis research or medical therapies.

Methyl Salicylate

An organic ester naturally produced by many plants and used as a fragrance, flavoring agent, and in pain relief medications.

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Systemin

A plant peptide hormone involved in defense responses, signaling systemic responses to local damage or attack.