You are considering the purchase of a stock that is not currently listed on an active secondary market. On the recent financial statement, the book
You are considering the purchase of a stock that is not currently listed on an active secondary market. On the recent financial statement, the book value of equity is reported as $36,425,000 and there are 6,257,000 shares outstanding. You plan on calculating the MarkettoBook Ratio for a comparable company whose shares are publically traded, and are currently selling for $27.93. This firms book value of equity is $139,843,000 and it has 27,826,000 shares outstanding. Based on this comparable MarkettoBook Ratio, how much should you be willing to pay for the shares of your firm of interest?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started