Question
A firm has the following book-value balance sheet; Debt =$ 7 ,000, Common Stock ($1 par)= 655 and Retained Earnings = $ 24 ,000. The
A firm has the following book-value balance sheet; Debt =$ 7 ,000, Common Stock ($1 par)= 655 and Retained Earnings = $ 24 ,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling for $ 1,235 and the firm's stock is currently selling for $ 35 . The firm's tax rate is 22 . What is the firm's market value? Show your answer to the nearest $1. Do not use commas or the $ sign in your answer.
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
