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4. Rylan Industries has 5 million shares. The market price per share is $22 and the total book value of the equity on the firm's
4. Rylan Industries has 5 million shares. The market price per share is $22 and the total book value of the equity on the firm's balance sheet is $50 million. Suppose the firm's book debt-to-equity ratio is 1.4 and it has cash of $6.3 million. a) What is the firm's market capitalization? b) How does the market capitalization compare to Rylan's book equity value? What is the firm's market-to-book ratio? c) What is the firm's enterprise value? How does that compare with its total capitalization measured in book value terms? 5. In 2019, Rylan Industries net income increased by $1.5 million while its depreciation expense decreased by $750,000. The firm's total corporate tax rate is 25%. How did the decline in Rylan's depreciation expense affect its end-of-year cash balance
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