Ride World has estimated the market value of its assets to be $1,250,000. What is the value of Ride World's common stock if it has $900,000 in liabilities, $50,000 in preferred stock, and 7,500 shares of common stock outstanding?

What will be an ideal response?

Stock price = ($1,250,000 - $900,000 - $50,000 ) / 7,500 = $40

Business

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