Question
Using a standard DCF corporate valuation model, the value of Greshak Corp's operations is $680 million. The company's balance sheet shows the following amounts on
Using a standard DCF corporate valuation model, the value of Greshak Corp's operations is $680 million. The company's balance sheet shows the following amounts on the date of the valuation analysis: $75 million in accounts receivable; $250 million in net fixed assets; $60 million in short-term investments that are unrelated to operations; $65 million in accounts payable; $120 million in notes payable; $250 million in long-term bonds payable; $70 million in preferred stock; and $150 million in total common equity. If the company has 20 million shares of stock, what is your best estimate for the stock price per shares? Select one: A. $ 7.50. B. $10.00. C. $14.00. D. $15.00. E. $17.50
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