CIBC Has 110 Million Shares Outstanding,with a Current Share Price

question 43

Multiple Choice

CIBC has 110 million shares outstanding,with a current share price of $94.50 per share.If the firm's market-to-book ratio is 7.85,what is the firm's book value of equity?

• A)$5.6 billion
• B)$0.9 billion
• C)$10.4 billion
• D)$1.3 billion
• E)$2.75 billion

---

Definitions:

Corporation

A legal entity recognized by law as a separate entity from its owners with its own rights, liabilities, and obligations.

Board of Directors

A group of individuals elected to represent shareholders and govern the corporation's affairs and decision-making processes.

General Partnership

A business structure where two or more individuals own and operate a business together, sharing all profits, losses, and liabilities equally, unless otherwise agreed.

Formalities

Specific procedures or ceremonial acts legally required to validate contracts, documents, or other legal actions.