Question
In: Finance
Harper Industries has $400 million of common equity on its balance sheet; its stock price is...
Harper Industries has $400 million of common equity on its balance sheet; its stock price is $40 per share; and its market value added (MVA) is $70 million. How many common shares are currently outstanding? Write out your answer completely. For example, 5 million shares should be entered as 5,000,000. Round your answer to the nearest whole number, if necessary.
Solutions
Expert Solution
Market value of common equity = Book value of common equity + Market value added
= $400,000,000 + $70,000,000
= $470,000,000
Common share outstanding = Market value of common equity / Price per share
= $470,000,000 / $40
= 11,750,000.
In case of any query, kindly comment on the solution.
jeff jeffy answered 2 years agoRelated Solutions
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