Given the following information,compute the estimated value per share. $$\begin{array} { | l | r | }
\hline \text { Present value of cash flow } & \$ 25 \mathrm {~m} \
\hline \text { Midyear adjustment factor } & \$ 0.6 \mathrm {~m} \
\hline \text { Value of tax loss carryforwards } & \$ 1 \mathrm {~m} \
\hline \text { Value of debt } & \$ 8.6 \mathrm {~m} \
\hline \text { Value of capitaliced operating leases } & \$ 2.2 \mathrm {~m} \
\hline \text { Number of shares outstanding } & 8 \mathrm {~m} \
\hline
\end{array}$$

Question

Given the following information,compute the estimated value per share. $$\begin{array} { | l | r | } 
\hline \text { Present value of cash flow } & \$ 25 \mathrm {~m} \
\hline \text { Midyear adjustment factor } & \$ 0.6 \mathrm {~m} \
\hline \text { Value of tax loss carryforwards } & \$ 1 \mathrm {~m} \
\hline \text { Value of debt } & \$ 8.6 \mathrm {~m} \
\hline \text { Value of capitaliced operating leases } & \$ 2.2 \mathrm {~m} \
\hline \text { Number of shares outstanding } & 8 \mathrm {~m} \
\hline
\end{array}$$

Quizplus · Accepted Answer

To calculate the estimated value per share, first sum up all the components of value and then divide by the number of shares outstanding. The total value is the sum of the present value of cash flow, midyear adjustment factor, value of tax loss carryforwards, and subtracting the value of debt and capitalized operating leases because they represent obligations. $$ \text{Total value} = \$25m + \$0.6m + \$1m - \$8.6m - \$2.2m = \$15.8m $$$$ \text{Value per share} = \frac{\$15.8m}{8m \text{ shares}} = \$1.975 $$However, given the options provided, it seems there might have been a misunderstanding in the calculation or the options provided. Based on the calculation method and the options, none directly match the calculated result. Re-evaluating the calculation with the correct approach:$$ \text{Total value} = \$25m + \$0.6m + \$1m = \$26.6m $$$$ \text{Net value after obligations} = \$26.6m - \$8.6m - \$2.2m = \$15.8m $$$$ \text{Value per share} = \frac{\$15.8m}{8m} = \$1.975 $$Given the discrepancy and assuming a mistake in the calculation explanation due to the options provided, the correct approach to match an option would involve a different interpretation or calculation error. Without further information or clarification, the detailed calculation provided does not match the options, suggesting a need for reevaluation or correction in the premise or options.

Given the Following Information,compute the Estimated Value Per Share A)$500 B)$4

Given the Following Information,compute the Estimated Value Per Share A)$500
B)$4