Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock outstanding. If their Market Value Added (MVA) is $152 million, what is the company's stock price? Your answer should be between 27.52 and 50.98, rounded to 2 decimal places, with no special characters.
Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock outstanding. If their Market Value Added (MVA) is $152 million, what is the company's stock price? Your answer should be between 27.52 and 50.98, rounded to 2 decimal places, with no special characters.
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
Related questions
Question
12
Transcribed Image Text:Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock
outstanding. If their Market Value Added (MVA) is $152 million, what is the company's stock price?
Your answer should be between 27.52 and 50.98, rounded to 2 decimal places, with no special characters.
Expert Solution
Introduction and Formula
Solution:
Market Value Added (MVA) means the difference between the market value of a firm and its common equity.
So, MVA = Market value – Common equity
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education