What Is the Market Price of a Share of Stock

question 43

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/book ratio of 3.5?

• A)$8.57
• B)$30.00
• C)$85.70
• D)$105.00

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Definitions:

Transnational Strategy

An approach used by businesses that involves balancing global efficiencies with local responsiveness in their operations across various countries.

Locally Responsive

The ability of a business to adapt its products, services, and operations to meet the specific demands and preferences of local markets.

Globally Integrated

Refers to entities such as economies, businesses, or systems that are interconnected and interdependent across the world.

Location Economies

The cost advantages obtained by a business due to its geographical position or the location of its resources and operations.