Compute stock price per share

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After applying the corporate valuation model, the value of a firm's operations is found to be $400 million. The balance sheet shows $20 million in short-term investments that are not related to operations. The balance sheet also shows $50 million in accounts payable, $90 million in notes payable, $30 million in long-term debt, $40 million in preferred stock, and $100 million in total common equity.

If the company has 10 million shares of stock, what is the best estimate for the firm's stock price per share?

 

Reference no: EM1361317

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