25.

Using the corporate valuation model, the value of a company's operations is determined to be $750 million. The company's balance sheet shows $50 million in short-term investments unrelated to operations. The balance sheet also shows $100 million in accounts payable, $100 million in notes payable, $200 million in long-term debt, $40 million in common stock (par plus paid-in-capital), and $160 million in retained earnings. If the market value of debt equals the book value, what's the market value of equity?

Group of answer choices

$400 million

$200 million

$300 million

$600 million

$500 million