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:

Computational

Related to the process of using computer algorithms and software to solve problems and analyze data.

Definitional

Pertaining to the precise meaning or nature of a term or concept.

Formula

A mathematical expression that calculates or represents a relationship between different quantities.

Sum of Squares

The sum of the squared differences between each observation and the overall mean, used in various statistical calculations.