BK Corporation has a value of operations equal to P2,100, short-term investments of  P100, debt of P200, and 100 shares of stock.  If BK converts its short-term investments to cash and repurchases P100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BK Corporation has a value of operations equal to P2,100, short-term investments of  P100, debt of P200, and 100 shares of stock. 

If BK converts its short-term investments to cash and repurchases P100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding? 

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