A company has a share price of $22.15 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) $1.9 billion
B) $3.044 billion
C) $4.566 billion
D) $3.8 billion

Question

Quizplus · Accepted Answer

D) Market cap = $22.15 × 118 = $2.614 billion; 11ea84dc_f588_4006_9a63_67ad3354b064_TB1316_00_TB1316_00 11ea84dc_f588_6717_9a63_c79e0ac92edb_TB1316_00_TB1316_00 11ea84dc_f588_6718_9a63_e12c73a75cdd_TB1316_00_TB1316_00

A Company Has a Share Price of $22