A Company Has a Share Price of $24

question 55

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)$4.2 billion
• B)$1.5
• C)$3.6 billion
• D)$2.8 billion