A firm has:

80 million shares;

$120 million expected earnings (or net income) over the next year;

40% debt-to-assets ratio where both the debt and asset values are market values rather than book values;

25 times forward looking PE ratio.

Which of the below statements is NOT correct based on a PE multiples valuation? All values are rounded to 2 decimal places.

Select one:

a.

The EPS is $1.50.

b.

The share price is $37.50.

c.

The market capitalisation of equity is $2 billion.

d.

The market capitalisation of assets is $5 billion.

e.

The asset-to-equity ratio is 166.67%