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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
Transcribed Image Text: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
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