Based on the Corporate Valuation Model,Morgan Inc

Multiple Choice

Based on the corporate valuation model,Morgan Inc.'s total corporate value is $300 million.The balance sheet shows $90 million of notes payable,$30 million of long-term debt,$40 million of preferred stock,and $100 million of common equity.The company has 10 million shares of stock outstanding.What is the best estimate of the stock's price per share?

A) $12.00
B) $12.64
C) $13.30
D) $14.00
E) $14.70