Assume a Book Value Per Share of $5 and a Price

question 19

Multiple Choice

Assume a book value per share of $5 and a price per share of $12. What is the market value added of a firm with 2,000,000 outstanding shares?

• A)$1,000,000
• B)$10,000,000
• C)$14,000,000
• D)$24,000,000

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Definitions:

Grouped Frequency Distribution

A way of summarizing data that shows the frequency (or count) of observations within specified groups or intervals.

Intervals

A range of values between two points, often used in mathematics and statistics to specify subsets of real numbers.

Nature of Data

Refers to the intrinsic characteristics of data, including its type (quantitative or qualitative), structure, and the way it is measured or collected.

Real Limits

Values of a variable located halfway between the top of one interval and the bottom of the next interval.