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Bavarian Sausage's Enterprise Value Is $75,000,000, the Market Value of Its

Question 7

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Bavarian Sausage's enterprise value is $75,000,000, the market value of its debt is $23,000,000 and the market value of its preferred stock is $5,000,000. If the company has 3,500,000 shares outstanding, what should be Bavarian Sausage's stock price?


A) $14.86
B) $21.43
C) $13.43
D) $6.57

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