Give true answer the question A firm has a total book value of equity of$300,000, a market-to-book ratio of 0.33 (one-third), and a book value per share of $8.What is the total market value of the firm'sequity?a. $100,000b. $37,500c. $112,500d. $900,000e. $1,200,000

To find the total market value of the firm's equity, we use the following formula: Market Value of…

Answered: A firm has a total book value of equity…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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A firm has a total book value of equity of $300,000, a market-to-book ratio of 0.33 (one- third), and a book value per share of $8. What is the total market value of the firm's equity? a. $100,000 b. $37,500 c. $112,500 d. $900,000 e. $1,200,000
A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and a book value per share of $8.00. What is the total market value of the firm's equity? O$ 100,000 O$ 37,500 O$ 112,500 O$ 900,000 O $1,200,000
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A firm has total book value of equity of $2 million, a market to book ratio (market price/book value) of 4, and a book value per share of $5.00. What is the market value per share of the firm's equity?
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Suppose a firm has a book value of owner's equity of $1,200. This is a small firm. If there are 100 shares of stock outstanding, and the firm exhibits a market-to-book ratio of ten, what is the current stock price (Po)? O $75 O $12 O $60 O $120 O $48
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Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's payout ratio be?
A firm has an equity multiplier of two and total assets of $300. If its return on equity is 10%, what is its net income? O $15.00 O $10.00 O $30.00 O $22.50 O $7.50
Alpha Corporation has average annual free cashflows to the equity holder and to the firmof P3,000,000 and P3,350,000 respectively. Assuming that the weighted average cost ofcapital and actual return of on assets is 16.75% while the market return on Alpha's debt is7%, what is the value of its equity? a. P34,358,974.36 b.P15,000,000.00 c.P17,910,447.76 d.P20,000,000.00
Estimating Cost of Equity Capital Assume that a company’s market beta equals 0.8, the risk-free rate is 5%, and the market return equals 8%. Compute the company’s cost of equity capital. Round answer to one decimal place (ex: 0.0245 = 2.5%) Answer%
A firm paid a dividend of Rs. 3 to equity holders. The firm's cost of equity is 15%; and the firm's common equity per share is Rs. 40. Using the Gordon Growth Model, the value of g for the firm is O a. 8.98% O b. 7.98% O c. 6.98% O d. 5.2%

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