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Suppose that there are two firms, A and B. As stock price is $4, and A has 4,000 shares outstanding. Bs stock price is $15,
Suppose that there are two firms, A and B. As stock price is $4, and A has 4,000 shares outstanding. Bs stock price is $15, and B has 6,000 shares outstanding. The book value of As assets is $50,000, and the book value of As debt is $34,000. The book value of Bs assets is $100,000, and the book value of Bs debt is $85,000. Which firm is more likely to be a growth firm?
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