Based on the corporate valuation model, Morgan Inc.'s value of operations is $300 million. The balance sheet shows $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?
A) $12.00
B) $12.64
C) $13.30
D) $14.00
E) $14.70
Correct Answer:
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