Hayes Corporation has $300 million of common equity,with 6 million shares of common stock outstanding.If Hayes' Market Value Added (MVA)is $126 million,what is the company's stock price? (Round your final answer to two decimal places. )

Question

Quizplus · Accepted Answer

The Market Value Added (MVA) is the difference between the market value of a company's equity and the book value of its equity. Given that MVA is $126 million and the book value of equity is $300 million, the market value of equity is $426 million. Dividing this by the 6 million shares outstanding gives a stock price of $71.00.

Hayes Corporation Has $300 Million of Common Equity,with 6 Million