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

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