Solve this problem 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, you can use the formula:Market Value of Equity=…

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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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
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%
A firm has common stock with D1 = $3.00; P0 = $30; g = 5%; andF = 4%. If the firm must issue new stock, what is its cost of externalequity, re? (15.42%)

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