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A Company Has a Share Price of $24

Question 38

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) $1.5 billion
B) $2.8 billion
C) $3.6 billion
D) $4.3 billion
E) $2.9 billion

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