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Given the following information, what is the value of Starlight Inc. (in millions)? Common Stock: 14.90 million shares outstanding with a $10 par value. Market
Given the following information, what is the value of Starlight Inc. (in millions)? Common Stock: 14.90 million shares outstanding with a $10 par value. Market price is $48.50/share. Bond Issue 1: $450 million face value, currently selling for 110% of par Bond Issue 2: $240 million total face value, each bond is selling for $1,050 per $1,000 face value. (No excel answers please).
a. $896
b. $1,470
c. $851
d. $1,225
e. $1,301
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