Use the Information for the Question(s)below

question 11

Multiple Choice

Use the information for the question(s) below.
In November 2009,Perrigo Co.(PRGO) had a share price of $39.20.They had 91.33 million shares outstanding,a market-to-book ratio of 3.76.In addition,PRGO had $845.01 million in outstanding debt,$163.82 million in net income,and cash of $257.09 million.
-Perrigo's book value of equity is closest to:

• A)$952.16 million.
• B)$3580.14 million.
• C)$4168.06 million.
• D)$4425.15 million.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.