Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AcmeCo has total assets of $55 million and total liabilities of $42 million. If the company has 10,000,000 shares outstanding, and a market-to-book ratio of

AcmeCo has total assets of $55 million and total liabilities of $42 million. If the company has 10,000,000 shares outstanding, and a market-to-book ratio of 35, what is the price of an AcmeCo share?

A.$45.50

B.$13

C.$50

D.$1.30

Scubaco has a share price of $72.36, a book value of debt of $4,984 million, and cash of $1,100.7 million. It has 120 million shares outstanding. What is its enterprise value?

A.$12,566.5

B.$14,341.5

C.$17,510.5

D.$11,220.5

A company has a share price of $23.19 and 120 million shares outstanding. It's market-to-book ratio is 4.2, it's book debt- equity ratio (i.e., book debt / book equity) is 3.2, and it has cash of $850 million. Approximately how much would it cost to buy this business assuming you pay its enterprise value?

A.$3.2 Billion

B.$2.0 Billion

C.$4.9 Billion

D.$4.1 Billion

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essential Nonprofit Fundraising Handbook

Authors: Michael A. Sand, Linda Lysakowski

1st Edition

1601630727, 978-1601630728

More Books

Students also viewed these Finance questions

Question

1. In what ways has flexible working revolutionised employment?

Answered: 1 week ago