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You have the opportunity to buy into a share of the surgery center where you work. The book value of the building,property, and equipment is
You have the opportunity to buy into a share of the surgery center where you work.
The book value of the building,property, and equipment is $3.5 million.
The EBIT is $1 million/yr.
The cost of capital is 10%.
If the surgery center were to issue 100 shares, what price would you be willing to pay per share?
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