Question
Majestics operations is $680 million, based on the free cash flow valuation model. Its balance sheet shows $60 million in accounts receivable, $40 million in
Majestics operations is $680 million, based on the free cash flow valuation model. Its balance sheet shows $60 million in accounts receivable, $40 million in inventory, $80 million in short-term investments that are unrelated to operations, $ 20 million in goodwill, $50 million in accounts payable, $50 million in notes payable, $120 million in long-term debt, $40 million in preferred stock, $120 million in retained earnings, and $210 million in total common equity. If the company has 18 million shares of stock outstanding, what is the best estimate of the stock's price per share?
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