A Company Has a Share Price of $22

question 42

Multiple Choice

A company has a share price of $22.15 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) $1.9 billion
• B) $3.044 billion
• C) $4.566 billion
• D) $3.8 billion

---

Definitions:

Neonatal Sepsis

A life-threatening condition where a newborn's body responds to an infection with widespread inflammation, potentially leading to significant health complications or death.

Hypothermia

A medical emergency that occurs when the body loses heat faster than it can produce, causing a dangerously low body temperature.

Hyperthermia

An abnormally high body temperature, often resulting from extended exposure to hot conditions or inability of the body to cool down, potentially dangerous if not treated.

Anemia

A condition in which the blood doesn't have enough healthy red blood cells to carry adequate oxygen to the body's tissues.