Given the Following Firm and Market Information,determine the Value of the Firm

question 50

Multiple Choice

Given the following firm and market information,determine the value of the firm. $$\begin{array}{l}\begin{array} { l l r } \text {Net profit margin}&3 \% \\\text {Total asset turnover}&1.5 \\\text {Debt/equity}&0.5 \\\text {Plowback ratio}&0.5 \\\text {Last year's dividends per share}&\$ 2.00 \\\text {Firm beta}&1.2 \\\text {Risk-free rate}&5 \% \\\text {Market risk premium}&8 \%\end{array}\end{array}$$

• A) $28.42
• B) $18.42
• C) $8.42
• D) $38.42
• E) none of these

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