The value of Broadway-Brooks Inc.'s operations is $900 million, based on the corporate valuation model.Its balance sheet shows $70 million in accounts receivable, $50 million in inventory, $30 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity.If the company has 25 million shares of stock outstanding, what is the best estimate of the stock's price per share?
A) $23.00
B) $25.56
C) $28.40
D) $31.24
E) $34.36
Correct Answer:
Verified
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