Question
A firm has current assets that could be sold for their book value of $20 million. The book value of its fixed assets is $58
A firm has current assets that could be sold for their book value of $20 million. The book value of its fixed assets is $58 million, but they could be sold for $88 million today. The firm has total debt with a book value of $38 million, but interest rate declines have caused the market value of the debt to increase to $48 million. What is the ratio of the market value of equity to its book value?
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
