Problem:

Based on the corporate valuation model, the value of a company'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.

Required:

If the company has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share?

a. $27.67

b. $24.90

c. $33.48

d. $36.82

e. $30.43.

Note: Show supporting computations in good form.