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Use the Information for the Question(s)below

Question 2

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Use the information for the question(s) below.
Kinston Enterprises has no debt and a debt obligation of $47 million that is due now.The market value of Kinston's assets is $102 million,and the firm has no other liabilities.Assume that capital markets are perfect and that Kinston has 5 million shares outstanding.
-Kinston's current share price is closest to:


A) $20.40.
B) $9.40.
C) $11.00.
D) $10.00.

Correct Answer:

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