Question
A firm reported the following in its annual report ending December 31, 2017 (in millions): Short-term debt $1,154.20 Long-term debt $5,642.23 Stockholder's equity $7,511.33 Both
A firm reported the following in its annual report ending December 31, 2017 (in millions):
Short-term debt | $1,154.20 |
Long-term debt | $5,642.23 |
Stockholder's equity | $7,511.33 |
Both short-term and long-term debts are carried on the balance sheet at approximately their market value. In addition, the firm has 243.11 million shares traded at $32.44 per share.
The value of firm has to be equal to the value of claimants to the firm. what is the enterprise market value of the firm? Hint: you want to use the market value of equity.
A. $12,125.31
B. $13,525.11
C. $14,682.92
D. $15,114.56
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