What Is the Market Price of a Share of Stock

question 4

Multiple Choice

What is the market price of a share of stock for a firm with 100,000 shares outstanding,a book value of equity of $3,000,000,and a market-to-book ratio of 3?

• A) $10
• B) $30
• C) $90
• D) $105

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Definitions:

Tabula Rasa

A philosophical theory that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

John Locke

A 17th-century English philosopher and physician, considered one of the most influential of Enlightenment thinkers and known as the "Father of Liberalism."

Historical Eras

Designates distinct periods of human history, each characterized by unique developments in culture, technology, and social structure.

Miniature Adults

An outdated concept regarding children as small adults capable of taking on adult responsibilities and rational thinking.