A Firm Has 41 Million Shares Outstanding with a Current

question 68

Multiple Choice

A firm has 41 million shares outstanding with a current share price of $4.30 The firm has a market-to-book ratio of 8.5 and a book debt-equity ratio of 2.2.If the firm currently has $18 million in cash,what is its enterprise value?

• A)$176 million
• B)$204 million
• C)$148 million
• D)$49 million
• E)$240 million

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Definitions:

Job Enlargement

A method of job design that increases the range and variety of tasks performed by an employee to enhance job satisfaction.

Job Satisfaction

A measure of how content an individual is with their job.

Job Enrichment

Involves redesigning jobs to give employees greater responsibility and opportunities to use their skills and abilities to improve job satisfaction.

Motivating Potential

The capacity of a task, role, or job to inspire sustained interest and effort from those engaged in it.