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The Book Value of a Firm's Equity Is $100 Million

Question 8

Multiple Choice

The book value of a firm's equity is $100 million and its market value of equity is $200 million. The face value of its debt is $50 million and its market value of debt is $60 million. What is the market value of assets of the firm?


A) $150 million
B) $160 million
C) $260 million
D) $250 million

Correct Answer:

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