Based on the corporate valuation model, the value of Macro Co.'s operations is $1.35 billion. The company's balance sheet shows $90 million in accounts receivable, $70 million in inventory, and $175 million in short-term investments that are unrelated to operations. The balance sheet also shows $85 million in accounts payable, $125 million in notes payable, $315 million in long-term debt, $55 million in preferred stock, $182 million in retained earnings, and $803 million in total common equity. If Macro has 40 million shares of stock outstanding, what is the best estimate of the stock's price per share? O $29.75 $28.00 $25.75 O $27.50 O $23.63

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Based on the corporate valuation model, the value of Macro Co.'s operations is $1.35 billion.
The company's balance sheet shows $90 million in accounts receivable, $70 million in
inventory, and $175 million in short-term investments that are unrelated to operations. The
balance sheet also shows $85 million in accounts payable, $125 million in notes payable,
$315 million in long-term debt, $55 million in preferred stock, $182 million in retained
earnings, and $803 million in total common equity. If Macro has 40 million shares of stock
outstanding, what is the best estimate of the stock's price per share?
O $29.75
O $28.00
O $25.75
O $27.50
$23.63
Transcribed Image Text:Based on the corporate valuation model, the value of Macro Co.'s operations is $1.35 billion. The company's balance sheet shows $90 million in accounts receivable, $70 million in inventory, and $175 million in short-term investments that are unrelated to operations. The balance sheet also shows $85 million in accounts payable, $125 million in notes payable, $315 million in long-term debt, $55 million in preferred stock, $182 million in retained earnings, and $803 million in total common equity. If Macro has 40 million shares of stock outstanding, what is the best estimate of the stock's price per share? O $29.75 O $28.00 O $25.75 O $27.50 $23.63
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