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wrote...
Posts: 1098
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A year ago
If CCM has $150 million of debt and 12 million shares of stock outstanding, then the share price for CCM is closest to:
A) $49.50
B) $11.25
C) $20.50
D) $22.75
Textbook 
Corporate Finance: The Core
Edition: 4th
Authors:
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wrote...
A year ago
C
Explanation:  C) V0 =   +   + ... +   + 

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

Equity value = $396 - $150 (debt) = $246 million/12 million shares = $20.50
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