Estimate of the stock price per share

Assignment Help Accounting Basics
Reference no: EM13154215

Based on the corporate valuation model, the value of a company's operations is $900 million. 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?

Reference no: EM13154215

Questions Cloud

Explain to the general manager of your team : The player averages 5 rebounds and 20 points per game. Explain to the general manager of your team whether or not to sign the player.
Prepare a flexiable budget performance report : Prepare a flexiable budget performance report, assuimng that the company worked 8,500 direct labor hours during the month.
What is the molarity of a solution : What is the molarity of a solution prepared by dissolving 4.92 g of calcium nitrate, Ca(NO3)2, in 250 mL of water? (The molar mass of Ca(NO3)2 is 164 g/mol.)
Explain the heisenberg uncertainty principle : If the speed limit is 75 mph, could the driver of the car reasonably evade a speeding ticket by invoking the Heisenberg uncertainty principle?
Estimate of the stock price per share : If the company has 25 million shares of stock outstanding, what is the best estimate of the stock's price per share?
Calculate the elasticity for each variable at that point : Calculate the elasticity for each variable at that point and briefly comment on what information this gives you for each variable. Should this firm be concerned if macroeconomic forecasters predict a recession? Explain your answer.
What is the composition of gdp by percentage : What is the composition of GDP by percentage, what is the GDP per capita and  If government purchases go up in the short run, what happens to GDP?
What percentage of assets are held in mortgage loans : what percentage of assets do commercial banks hold in loans? what percentage of assets are held in mortgage loans?
Find probability in month there are nine days-precipitation : Find the probability that in a given month a) there are exactly 9 days with 0.01 inch or more precipitation, b) there are at most 9 days with 0.01 inch or more precipitation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd