Ask Question, Ask an Expert


Ask Financial Accounting Expert

Based on the corporate valuation model, the value of company's operations is $1,200 million. The company's balance sheet exhibits $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments which are unrelated to operations. The balance sheet as well exhibits $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 the company has 30 million shares of stock outstanding, describe 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

Market Value of + MV of of debt + MV of preferred + MV of + 50M + MV Equity
=> MV - 420M - (assume book value of debt debt)
=> share /30 = $27.67(d)

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M915795

Have any Question? 

Related Questions in Financial Accounting

Wilson athletic has developed a new golf ball that

Wilson Athletic has developed a new golf ball that consistently flies 20% further than their old balls. With the worldwide market for golf balls at 3 million dozen, Wilson believes their new ball is revolutionary enough ...

Bens office building with 200000 value has a rating area of

Ben's office building with $200,000 value has a rating area of 1 with a building class of B. The contents are valued at $90,000. Using the tables in the Business Math Handbook that accompanies the course textbook, determ ...

Wood cos dividends on noncumulative preferred stock have

Wood Co.'s dividends on noncumulative preferred stock have been declared but not paid. Wood has not declared or paid dividends on its cumulative preferred stock in the current or the prior year and has reported a net los ...

Question 5 betty derose inc prepared the following

Question 5 : Betty DeRose, Inc. prepared the following projected income statement information for 2011: Contribution margin    $900,000 Fixed costs                780,000 Net income                120,000 Assume that act ...

What are ldquohot assetsrdquo and why are they important in

What are “hot assets” and why are they important in the sale of a partnership interest? Why might this concept be relevant to discuss in the current economic climate for business?

Hingutt cove corporation has issued 4000 shares of common

Hingutt Cove Corporation has issued 4,000 shares of common stock, all of the same class; 3,500 shares are outstanding and 500 shares are held as treasury stock. On August 15, 2015, Hingutt Cove's board of directors decla ...

Can someone please solve for 1 paid-in capital in excess of

Can Someone Please Solve for: 1. Paid-in Capital in Excess of Par 2. Retained Earnings 3. Total Stockholders' Equity 4. Total Liabilities and Stockholders' Equity and PLEASE show me step-by-step how you arrived at this c ...

The cost of the equipment manufactured by solitaire is

The cost of the equipment manufactured by Solitaire is $120,000 and the fair value is $190,008.49. Solitaire incurred initial direct costs of $50,000 associated with putting the lease deal together. The term of the lease ...

1 an early extinguishment of bonds payable which were

1. An early extinguishment of bonds payable, which were originally issued at a premium, is made by purchase of the bonds between interest dates. At the time of reacquisition, a. any costs of issuing the bonds must be amo ...

Cash dividends sanders corporation has the following shares

Cash Dividends Sanders Corporation has the following shares outstanding: 7,000 shares of $50 par value, six percent preferred stock and 45,000 shares of $1 par value common stock. The company has $328,000 of retained ear ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate