Based on the corporate valuation model, Morgan Inc.'s total corporate value is $200 million. The...
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Accounting
Based on the corporate valuation model, Morgan Inc.'s total corporate value is $200 million. The balance sheet shows $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?
a.
$4.00
b.
$3.88
c.
$3.36
d.
$4.12
e.
$3.80
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