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What is the stock price for zn-g

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Your favorite firm, Zn-g Inc produces zinc. The total value of the firm is $700 million. This consists of risk-free debt and equity. Market value of debt is $150 million; and there are 50 million shares outstanding.

At date 1, the company finds reserves of zinc in a Torcouver field that it estimates are worth $250 million in terms of present value at date 1. Assume that interest rates and all other external factors remain the same; the debt remains risk-free throughout; markets are semi-strong form efficient.

What is the stock price [per share] for Zn-g at date 0?

Reference no: EM132680443

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