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A year ago
If DM has $500 million of debt and 14 million shares of stock outstanding, then what is the price per share for DM Corporation?
Textbook 
Corporate Finance: The Core
Edition: 4th
Authors:
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wrote...
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A year ago
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V0 =   +   + ... +   + 

V0 =   +   +   +   +  +   = 1017.66 million or $1018 million
Equity value = $1018 - $500 (debt) = $518 million/14 million shares = $37.00
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