1. Based on the corporate valuation model, Chewy Corp.'s total corporate value is $300 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?
$13.30
$14.00
$12.64
$12.00
2. Spline models can be more desirable for pricing because they are more flexible as compared to the Nelson and Siegel model, despite the fact that they are less parsimonious.
True or False