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What is the resulting estimated intrinsic stock price

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Reference no: EM132733306

Problem - Burns & Kennedy Corporation (BK) has a value of operations equal to $2,100, short-term investments of $100, debt of $200, and 100 shares of stock.

Required -

a. What is BK's estimated intrinsic stock price?

b. If BK converts its short-term investments to cash and pays a total of $100 in dividends, what is the resulting estimated intrinsic stock price?

c. If BK converts its short-term investments to cash and repurchases $100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding?

Reference no: EM132733306

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