You are now becoming an expert at valuing companies. You have been consulted to value an industrial firm. The enterprise value of the firm is $10.0 billion. The company has no straight debt. The company does have 100,000 convertible bonds outstanding. The market value of each bond is $1,150. The company also has 500 million shares outstanding.
1. What is the company’s equity value utilizing the market value approach?
2. What is the value per share utilizing the market value approach?