According to the free cash flow valuation model, the value of a company’s operations is $750 million. The company’s balance sheet shows $50 million in short-term investments that are unrelated to operations. The balance sheet also shows $100 million in accounts payable, $100 million in notes payable (interest-bearing) , $200 million in long-term debt (interest-bearing), $40 million in common stock (par plus paid-in-capital), and $160 million in retained earnings. What is your best estimate for the market value of equity? $200 million $300 million $400 million $500 million $600 million

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A:

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