Suppose you have the following information about a company. Calculate the stock price per share. A company has a current value of operations of $400 million. The company has $80 million in short-term investments, $200 million in debt and 10 million shares outstanding.
Suppose you have the following information about a company. Calculate the stock price per share. A company has a current value of operations of $400 million. The company has $80 million in short-term investments, $200 million in debt and 10 million shares outstanding.
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 you have the following information about a company. Calculate the stock price per share.
A company has a current value of operations of $400 million. The company has $80 million in short-term investments, $200 million in debt and 10 million shares outstanding.

Transcribed Image Text:Calculation:
Value of Operations
ST Investments
Debt
Number of Shares
Price Per Share
Total Value
Value of Equity
Answer (a, b or c)?:
a.
b.
C.
$28.00
$38.00
$48.00
(million)
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