A firm has a total book value of equity of $850,000, a market-to-book ratio of one-fourth, and a book value per share of $12.50. What is the total market value of the firm's equity? a. $130,000 b. $37,500 c. $212,500 d. $200,000 e. $1,200,000

A firm has a total book value of equity of $850,000, a market-to-book ratio of one-fourth, and a book value per share of $12.50. What is the total market value of the firm's equity? a. $130,000 b. $37,500 c. $212,500 d. $200,000 e. $1,200,000

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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Please provide the solution to this financial accounting question with accurate financial calculations.

A firm has a total book value of equity of $850,000, a
market-to-book ratio of one-fourth, and a book value
per share of $12.50. What is the total market value of the
firm's equity?
a. $130,000
b. $37,500
c. $212,500
d. $200,000
e. $1,200,000

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