A company has a share price of $24.50 and 118 million shares outstanding.Its market-to-book ratio is 4.2,its book debt-equity ratio is 3.2,and it has cash of $800 million.How much would it cost to take over this business assuming you pay its enterprise value?
A)$1.5 billion
B)$2.8 billion
C)$3.6 billion
D)$4.3 billion
E)$2.9 billion

Question

Quizplus · Accepted Answer

The Answer of A company has a share price of $24.50 and 118 million shares outstanding.Its market-to-book ratio is 4.2,its book debt-equity ratio is 3.2,and it has cash of $800 million.How much would it cost to take over this business assuming you pay its enterprise value?
A)$1.5 billion
B)$2.8 billion
C)$3.6 billion
D)$4.3 billion
E)$2.9 billion

A Company Has a Share Price of $24