Use the Table for the Question(s)below

question 63

Multiple Choice

Use the table for the question(s) below.
Consider the following balance sheet:

-If in 2012 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's Enterprise Value?

• A)-$63.3 million
• B)$353.1 million
• C)$389.7 million
• D)$516.9 million

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Definitions:

Gross Profit Method

A technique used to estimate the amount of ending inventory using the gross profit margin.

Net Realizable Value

The expected selling price in the ordinary course of business minus the estimated costs of completion and the costs necessary to make the sale.

Normal Selling Price

The standard amount charged to customers for a good or service under normal market conditions.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, before any purchases or sales have occurred.