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2. (9 points) Compute (a) return on equity (ROE),(b) market-to-book (M/B) ratio, and (c) enterprise value based on the following information: net profit margin =4%,
2. (9 points) Compute (a) return on equity (ROE),(b) market-to-book (M/B) ratio, and (c) enterprise value based on the following information: net profit margin =4%, asset turnover =1.5, debt =$60 million (assuming that the book value and market value of debt are the same), book value of assets =$100 million, market capitalization =$80 million, cash =$20 million
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