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Byrd Lumber has 2 million shares of common stock outstanding that sell for $17 a share....

Byrd Lumber has 2 million shares of common stock outstanding that sell for $17 a share. If the company has $25 million of common equity on its balance sheet, what is the company’s Market Value Added (MVA)? Answer options are provided in whole dollar.

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Expert Solution

Market Value Added = Market Value of Equity - Book Value of Equity

= (2 million * 17 ) - 25 million

= 34 million - 25 million

= 9 million

jeff jeffy answered 2 years ago
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