A firm has 12 million shares outstanding with a current share price of $8.50. The firm has a market-to-book ratio of 3.55 and a book debt-equity ratio of 0.8. If the firm currently has $4 million in cash, what is its enterprise value? Question content area bottom Part 1 A. $125 million B. $180 million C. $102 million D. $83 million E. $121 million

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.