Determine the stocks price per share


Question: Based on the corporate valuation model, Morgan Inc.’s value of operations is 300 dollar million.  The balance sheet shows 90 dollar million of notes payable, $30 million of long-term debt, 40 dollar million of preferred stock, and 100 dollar million of common equity.  The company has 10 million shares of stock outstanding.  Determine the stock’s price per share?

[A]       $13.30

[B]       $14.00

[C]       $14.70

[D]       $12.00

[E]       $12.64

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Finance Basics: Determine the stocks price per share
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