Its balance sheet shows 110 million in notes payable 90


Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $600 million. Its balance sheet shows $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of its stock price per share?

$15.20 $11.40 $16.87 $17.02 $17.63

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Its balance sheet shows 110 million in notes payable 90
Reference No:- TGS0600291

Expected delivery within 24 Hours