Based on the corporate valuation model, Morgan Inc.'s total corporate value is $200 million. The balance sheet shows $90 million of notes payable, $30 million of long term debt, $40 million of preferred stock, and $100 million of common equity. The company has so million shares of stock outstanding. What is the best estimate of the stock's price per share? O 13 M Ob 14.12 Oc13% Od 380 O 14.00

Based on the corporate valuation model, Morgan Inc.'s total corporate value is $200 million. The balance sheet shows $90 million of notes payable, $30 million of long term debt, $40 million of preferred stock, and $100 million of common equity. The company has so million shares of stock outstanding. What is the best estimate of the stock's price per share? O 13 M Ob 14.12 Oc13% Od 380 O 14.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose a company's equity is currently selling for $55 per share, with 4 million shares outstanding. If the company also has 17 thousand bonds outstanding, which are selling at 94% of par, what are the company current capital structure weights? Blank one is-----%(Equity to 2 decimal points); blank 2 is ______%(Debt to 2 decimal points)
Harper Industries has $700 million of common equity on its balance sheet; its stock price is $32 per share; and its market value added (MVA) is $150 million. How many common shares are currently outstanding? Write out your answer completely. For example, 5 million shares should be entered as 5,000,000. Round your answer to the nearest whole number, if necessary. common shares
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Big Industries has the following market-value balance sheet. The stock currently sells for $20 a share, and there are 1,260 shares outstanding. The firm will either pay a $1 per share dividend or repurchase $1,260 worth of stock. Ignore taxes. Liabilities and Assets Equity $ 7,200 Fixed assets 29,300 Debt $11,300 25,200 Cash Equity a. What will be the subsequent price per share if the firm pays a dividend? b. What will be the subsequent price per share if the firm repurchases stock? (Round your answer to the nearest dollar.) c. If total earnings of the firm are $25,500 a year, find earnings per share if the firm pays a dividend. (Do not round intermediate calculations. Round your answer to 3 decimal places.) d. If total earnings of the firm are $25,500 a year, now find earnings per share if the firm repurchases stock. (Do not round intermediate calculations. Round your answer to 3 decimal places.) e. If total earnings of the firm are $25,500 a year, find the price-earnings ratio if the…
Mitchell Co. has $1.1 million of debt, $2 million of preferred stock, and $1.8 million of common equity. What would be its weight on preferred stock?
Assume that a company has $3 billion in preferred stock and $17 billion in common stock. Also, it pays 6% dividends on preferred stock and its cost of equity capital is 7%. The company has no debt. Compute the company’s WACC.
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Based on the corporate valuation model, SG Telecom's total corporate value is $750 million. Its balance sheet shows $100 million notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings, with a WACC of 10%. If the company has 24 million shares of stock outstanding, what is its price per share? Your answer should be between 5.03 and 58.72, rounded to 2 decimal places, with no special characters.
(11)
A company has revenues of 24 million and depreciation and amortization expenses of 9 million. Operating margin is 42%, net margin is 7%, and gross margin is 57%. It has 19 million of debt, 6 million in cash, and 11 million shares outstanding. Comparable companies are trading at An average EV/EBITDA multiple of 12. How much are this company's shares worth using relative valuation? Round to one decimal place.

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