Use the information for the question(s)below.
In November 2009,Perrigo Co.(PRGO)had a share price of $39.20.They had 91.33 million shares outstanding,a market-to-book ratio of 3.76.In addition,PRGO had $845.01 million in outstanding debt,$163.82 million in net income,and cash of $257.09 million.
-Perrigo's enterprise value is closest to:
A)$952.16 million.
B)$3580.14 million.
C)$4168.06 million.
D)$4425.15 million.

Question

Quizplus · Accepted Answer

Enterprise Value (EV) = Market Capitalization + Debt - Cash
First, we need to calculate the market capitalization:
Market Capitalization = Share Price x Number of Shares Outstanding
Market Capitalization = $39.20 x 91.33 million
Market Capitalization = $3,578.14 million
Next, we calculate the enterprise value:
EV = $3,578.14 million + $845.01 million - $257.09 million
EV = $4,166.06 million
Therefore, the closest option is C) $4,166.06 million.

Use the Information for the Question(s)below