5 PTS A firm has a total book value of equity of $600,000, amarket-to-book ratio of one-third, and a book value pershare of $9.What is the total market value of the firm's equity?a. $130,000b. $37,500c. $112,500d. $200,000e. $1,200,000

To calculate the total market value of the firm's equity, we 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 $600,000, a market-to-book ratio of one-third, and a book value per share of $9. What is the total market value of the firm's equity? a. $130,000 b. $37,500 c. $112,500 d. $200,000 e. $1,200,000