A Company Has a Share Price of $24

question 56

Multiple Choice

A company has a share price of $24.50 and $118 million shares outstanding.Its market-to-book ratio is 4.2,its book debt-equity ratio is 3.2,and it has cash of $800 million.How much would it cost to take over this business assuming you pay its enterprise value?

• A)$1.5
• B)$2.8 billion
• C)$3.6 billion
• D)$4.2 billion

---

Definitions:

Unconstitutional Acts

Acts or laws that are found to violate a constitution, especially the U.S. Constitution, and are therefore invalid.

Congress

The national legislative body of a country, particularly referring in the United States to the bicameral legislature that constitutes the Senate and the House of Representatives.

Land Reform

The process of redistributing or regulating land ownership, often intended to increase agricultural production or to rectify inequities in land distribution.

Thaddeus Stevens

A nineteenth-century U.S. politician and fierce advocate for abolition and civil rights, particularly known for his role in shaping Reconstruction policies.