Assume that a firm is valued at $800 million and has 6 million shares of stock outstanding. This firm's stock should have a price of $____ per share.

Name: Assume that a firm is valued at $800 million and has 6 million shares of stock outstanding. This firm's stock should have a price of $____ per share.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

To calculate the price per share, we divide the total firm value by the number of shares outstanding: 
$800 million / 6 million shares = $133.33 per share. Therefore, the correct answer is choice C.

Assume That a Firm Is Valued at $800 Million and Has