Use the table for the question(s)below.
Consider the following balance sheet:
-If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then what is Luther's Enterprise Value?
A)-$63.3 million
B)$353.1 million
C)$389.7 million
D)$516.9 million

Question

Use the table for the question(s)below.
Consider the following balance sheet:  
-If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then what is Luther's Enterprise Value?
A)-$63.3 million 
B)$353.1 million 
C)$389.7 million 
D)$516.9 million

Quizplus · Accepted Answer

Enterprise Value = Market Capitalization + Total Debt - Cash and Cash Equivalents
Market Capitalization = Number of shares outstanding x Market Price per share
Market Capitalization = 10.2 million x $16 = $163.2 million

Total Debt = $85.5 million
Cash and Cash Equivalents = $10.8 million

Therefore, Enterprise Value = $163.2 million + $85.5 million - $10.8 million = $237.9 million

Hence, the correct option is C.

Use the Table for the Question(s)below