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Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding....

Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Hayes' Market Value Added (MVA) is $148 million, what is the company's stock price?

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Answer #1
Market Value Added (MVA) is difference of Market Value of Firm and Capital contributed by investors.
Capital contributed by Equity = $300 million
No. of Equity shares = 6 million shares
MVA added = $148 million
MVA = (Stock price * No. of shares) - Equity capital
$148 million = (stock price * 6 million) - $300 million
$448 million = Stock price * 6 million
Stock price = $448 million/6 million
Stock price = $ 74.66667 or 74.67
So, stock price is $74.67.
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