Respuesta :
Answer:
1) $6.32
2) $7.50
3) $6.65
4) $7.35
The correct  option is the second one ,$7.50
Explanation:
The value of operations is $1,000
If dividends of $50 million is paid,such cash would be paid  would be gotten from short-term investments of $100 million since it is easily convertible to cash without losing a significant portion of its value,hence the short term investments reduce to $50  million
                                $ million
Value of operations                 $1000
plus value of non-operating assets      $50
Value of firm                       $1050
less value of debt                   ($300)
Intrinsic value of the firm            $750
Intrinsic value of share=$750/100=$7.5
The intrinsic value per share is the total value attributable to common stock divided by the number of common stock in issue.
