Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) A firm has total assets of 25 million TL. Its current assets is 10 million TL and fixed assets (machinery, real estate etc) is

1) A firm has total assets of 25 million TL. Its current assets is 10 million TL and fixed assets (machinery, real estate etc) is 15 million TL. This firms financial leverage is %45. Firm has 1 500 000 total outstanding shares with 900 000 shares trading at the stock market and one share sells 10 TL in the stock market. What is the firms Price/Book ratio( PD/DD)? Calculate the expected stock price and market cap if the average Price/Book ratio (PD/DD) of the comparable firms is 1,2. Would you invest in this stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Mathematics For Economic Analysis

Authors: Knut Sydsaeter, Peter Hammond, Arne Strom

4th Edition

0273760688, 9780273760689

More Books

Students also viewed these Finance questions

Question

=+Explain the skills needed to create a sustainable personal bran

Answered: 1 week ago