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Germer Coporation has $300 million of common equity, with 6 million shares of common stock outstanding....

Germer Coporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Germer’s Market Value Added (MVA) is 198 million, what is the Company’ stock price? (Round your final answer to two decimal places.)

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Answer #1

Market value of equity = (Stock price × Number of shares) − Total BV of Equity

$198,000,000 = (Stock price × 6,000,000) − $300,000,000

Stock price = $83.00

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