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.

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Chapter15: Capital Investment Analysis
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Problem 15.5.2MBA: Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the...
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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.

 

 

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)
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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