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

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Definitions:

Devaluation

The process of reducing or underestimating the worth or importance of something or someone.

Cross-gender Conversation

Interactions that occur between individuals of different gender identities, highlighting differences in communication styles and understanding.

Communicate Differently

The phenomenon that individuals or groups may vary in their methods, styles, or preferences for exchanging information and expressing thoughts and emotions.

Gender-linked

Traits, behaviors, or interests that are traditionally associated with a particular gender, influenced by cultural, social, and biological factors.