Question
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
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