KMS Corporation has assets with a market value of $500 million, $50 million of which are cash. It has a debt of $200 million and 10 million shares are outstanding. Assume perfect capital markets. What is its current stock price?
Added by Saksham T.
Step 1
Step 1: Calculate the equity of KMS Corporation by subtracting its debt from its total assets: Equity = Total Assets - Debt Equity = $500 million - $200 million Equity = $300 million Show more…
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