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Corporate Valuation Model - Market Value of Equity

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I am having a hard time understanding this question. I came up with 450 million but it did not match the answer in the book. What am I doing wrong?

Using the corporate valuation model, the value of a company's operations is $750 million. The company's balance sheet shows $50 million in short-term investments that are unrelated to operations. The balance sheet also shows $100 million in accounts payable, $100 million in notes payable, $200 million in long-term debt, $40 million in common stock (par plus paid-in-capital), and $160 million in retained earnings. What is your best estimate for the market value of equity?

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Solution Summary

The solution explains how to determine the market value of equity using the corporate valuation model

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Assuming that book values of debt are close to market values of debt, the total market value of the company ...

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