A corporation has 5 million shares outstanding.Using the following information,calculate the value per share. DCF of operations = $858m
Financial subsidiary = $66m
Employee stock options = $6.6m
Bonds = $366.3m
Securitized receivables = $3.3m
Operating leases = $12.1m
The value per share is closest to:
A)$97.4
B)$107.1
C)$101.0
D)$105.4

Question

Quizplus · Accepted Answer

Value of the firm = $858m + $66m – $6.6m – $366.3m – $3.3m – $12.1m = $535.7m. Value per share = $535.7m/(5m shares) = $107.1/share

A Corporation Has 5 Million Shares Outstanding