Based on the Corporate Valuation Model, the Value of Chen

Multiple Choice

Based on the corporate valuation model, the value of Chen Lin Inc.'s operations is $900 million. Its balance sheet shows $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of its stock price per share?

A) $22.03
B) $24.48
C) $27.20
D) $29.92
E) $32.91