Question
Hayes Corporation has $210 million of common equity on its balance sheet and 6,000,000 shares of common stock outstanding. The company's Market Value Added
Hayes Corporation has $210 million of common equity on its balance sheet and 6,000,000 shares of common stock outstanding. The company's Market Value Added (MVA) is $117 million. What is the company's stock price? (Answers are in $ millions.) You are given the following information: Stockholders' equity = $397 million; price/earnings ratio = 46; shares outstanding = 11,020,000; and market/book ratio -4.19. Calculate the market price of a share of the company's stock..
Step by Step Solution
3.45 Rating (132 Votes )
There are 3 Steps involved in it
Step: 1
SOLUTION To calculate the stock price we need to divide the market value of the equity which is equa...
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
14th edition
1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977
