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Which of the following statements is NOT
CORRECT?
Question 17
Based on the corporate valuation model, Hunsader’s value of
operations is $300 million. The balance sheet shows $20 million of
short-term investments that are unrelated to operations, $50 million of
accounts payable, $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?
Answer
Question 18
Which of the following is NOT normally regarded as being a
good reason to establish an ESOP?