Share
Explore BrainMass

Price per share

It is a finance problem. Could you please show me the steps of solving this problem? I attached the excel file with this request.
The balance sheets of Roop Industries are shown below. The 12/13/2001 value of
operation is $ 651 million and there are 10 million shares of common equity.
What is the price per share ?

Assets Liabilities & Equity
Cash $20.0 Account payable $19.0
Marketable securities $47.0 Notes payable $65.0
Accounts receivable $100.0 Accruals $51.0
Inventories $200.0 Total current liabilities $135.0
Total current assets $367.0 Long-term bonds $131.0
New plant and Equipments $279.0 Preferred stock $33.0
Common stock (par plus PIC) $160.0
Retained earnings $187.0
Common Equity $347.0
Total assets $646.0 Total Liabilities and equity $646.0

Attachments

Solution Preview

Total corporate value = Value of operations + marketable securities
= $651 + $47 = $698 ...

Solution Summary

The solution explains how to calculate the value per share using the corporate valuation model

$2.19