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You estimate that a company's enterprise value is $189 million. If it has $66 million debt,...

You estimate that a company's enterprise value is $189 million. If it has $66 million debt, $12 million in cash, and there are 11 million shares outstanding, what should be its stock price? Round to one decimal place.
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Answer #1

Calculation of stock price:

Enterprise value= equity+debt-cash

189= equity+66-12

Equity= $135 million

Stock price= Equity/number of shares= 135/11= 12.27

Stock price is $12.3

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