Question
A firm has current assets that could be sold for their book value of $25 million. The book value of its fixed assets is
A firm has current assets that could be sold for their book value of $25 million. The book value of its fixed assets is $75 million. But they could be sold for $100 million today. The firm has total debt with a book value of $50 million, but interest rate declines have caused the market value of the debt to increase to $65 million. What is this firm's market-to-book ratio? A. 1.20 B. 1.33 C. 1.50 D. 1.67 E. 2.00
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
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