After careful research,you find the present value of the free cash flows of a firm to be $100 million.The market value of the firm's preferred stock is $15 million,while the market value of the firm's debt is $40 million.If the firm has 2 million shares of stock outstanding,what is the equity value per share?
A) $20.00
B) $22.50
C) $27.50
D) $30.00
Correct Answer:
Verified
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