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A year ago
If CCM has $200 million of debt and 8 million shares of stock outstanding, then the share price for CCM is closest to:
A) $49.50
B) $12.50
C) $19.35
D) $24.50
Textbook 
Corporate Finance: The Core
Edition: 4th
Authors:
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A year ago
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D
Explanation:  D) V0 =   +   + ... +   + 

V0 =   +   +   +   +   = 395.58 million or 396 million.

Equity value = $396 - $200 (debt) = $196 million/8 million shares = $24.50
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