Question: Suppose SSC has decided to distribute $50 million, which it presently is holding in very liquid short-term investments. SSCs value of operations is estimated to

Suppose SSC has decided to distribute $50 million, which it presently is holding in very liquid short-term investments. SSC’s value of operations is estimated to be about $1,937.5 million. SSC has $387.5 million in debt (it has no preferred stock). As mentioned previously, SSC has 100 million shares of stock outstanding. Assume that SSC has not yet made the distribution. What is SSC’s intrinsic value of equity? What is its intrinsic per share stock price?.

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