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vredina [299]
2 years ago
8

Based on the corporate valuation model, Morgan Inc.’s total corporate value is $325 million. The balance sheet shows $90 million

of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock’s price per share?
Business
1 answer:
Vsevolod [243]2 years ago
4 0

Answer:

$25.5

Explanation:

Morgan Inc.’s total corporate value = $325 million

notes payable = $90 million

long-term debt = $30 million

preferred stock = $40 million

common equity = $100 million

shares of stock outstanding = $100 million

Market Value of company

= Market Value of debt + Market Value of preferred + Market Value of equity

$325 million = $30 million + $40 million + Market Value of equity

or

Market Value of equity = $325 million - $30 million - $40 million

= $255 million

Share price = \frac{\textup{Market Value of equity}}{\textup{shares of stock outstanding}}

= \frac{\$255 million}{10 billion}

= $25.5

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3 0
3 years ago
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The Pinetop Corporation issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2014. All remaining shares
lidiya [134]

Answer:

$12,000 and $6,000

Explanation:

For computing the dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate  × number of years

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5 0
3 years ago
Tax cuts _________.A) and increases in government expenditures shift aggregate demand right.B) and increases in government expen
Pie

Answer: A. and increases in government expenditures shift aggregate demand right.

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When there is tax cut or reduction in tax, there will be more disposable income which will increase consumption and savings and in turn shift the aggregate demand to the right.

5 0
3 years ago
1.   What form of departmentalisation did the construction company responsible for building the taxi rank followed? Elaborate   
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The form of departmentalisation that the construction company responsible for building the taxi rank followed was <u>product departmentalization</u><u>.</u>

Product departmentalization is peculiar to a bug company that deals with multi-products. Construction company may be responsible for taxis, trucks or buses. Construction company responsible for taxi rank in this case grouped all the activities related to the taxis in a specific department.

Product departmentalization becomes vital when producing, marketing, and handling of every product hold certain importance for the company. It requires the company to ensure specialized production facilities.

<h3>What is departmentalization?</h3>

Departmentalization is an establishment structure that divides people into groups, or departments, based on certain sets of criteria. These departments have their own leadership and work together to complete tasks.

Therefore, the correct answer is as given above

learn more about departmentalization: brainly.com/question/6229273

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QveST [7]

Answer: Option C

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These activist complain that, if the business organisation are made free to trade then the poor countries like in Africa, will sacrifice their environmental duties for the investment from rich countries.

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