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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?

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