Question

Hayes Corporation has $290 million of common equity on its balance sheet and 5,000,000 shares of common stock outstanding. The company's Market Value Added (MVA) is $165 million. What is the company's stock price?

Answer 1

Answer:

Company's stock price is $455 million

Explanation:

MVA = Market Value of Shares – Book Value of Shareholders’ Equity

$165 million = Market Value of Shares - 290 million

$165 million + 290 million = Market Value of Shares

Market Value of Shares = 455 million

Market Value of Shares = 455 million

Market Value of Shares = 455 million

Company's stock price = 455 million