Question
Your company has the following balance sheet characteristics: Total Assets = $1,000,000,000; Current Liabilities = $100,000,000; Long Term Debt = $300,000,000; Current Book Value Equity
Your company has the following balance sheet characteristics:
Total Assets = $1,000,000,000;
Current Liabilities = $100,000,000;
Long Term Debt = $300,000,000;
Current Book Value Equity = $600,000,000;
Shares Outstanding = 80,000,000;
Current Market Price, P0 = $30:
What is the current Book Value per share (Book Value), the current Market Value per Share and the Market Value Added per share? Does your firm create wealth for stockholders?
Book Value per Share =
Market Value per Share =
Market Value Added per Share =
Does your firm create wealth for stockholders?
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