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, and it has #387.5 million in debt (it has no preferred stock). As mentioned,previously, SSC has 100 million shares of stock outstanding.,,,1. Assume that SSC has not yet made the distribution. What is SSC’s intrinsic value of equity? ,What is its intrinsic stock price per share?,2. Now suppose that SSC has just made the $50 million distribution in the form of dividends. What is SSC’s intrinsic value of equity?,What is its intrinsic stock price per share? ,,
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