Bluestar Airlines has physical assets valued at ($12,500,000,) and according to industry experts, the net present value

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Bluestar Airlines has physical assets valued at \($12,500,000,\) and according to industry experts, the net present value of its future earnings amounts to \($40.00\) per share. Assuming there are 1,000,000 outstanding shares, determine the maximum price per share that a buyer will pay in an equity sale if this buyer is thinking about dismantling the company and selling its assets.

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Financial Markets And Institutions

ISBN: 9780138043681

10th Edition

Authors: Frederic S Mishkin, Stanley Eakins

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