Question
Based on the corporate valuation model, the value of Greshak Corp.'s operations is $1,200 million. The company's balance sheet shows $80 million in accounts receivable,
Based on the corporate valuation model, the value of Greshak Corp.'s operations is $1,200 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If the company has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share? YOU MUST SHOW ALL WORK TO RECEIVE CREDIT!
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