What is the stock price for gamma technology

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Question

Beta Industries and Gamma Technology have identical assets that generate identical cash flows. Beta Industries is an all-equity firm, with 30 million shares outstanding that trade for a price of $20 per share. Gamma Technology has 40 million shares outstanding as well as debt of $100 million. In the perfect world (no taxes, no financial distress or agency costs, etc.), what is the stock price for Gamma Technology? Provide calculations and necessary explanations.

Reference no: EM133629953

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