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In December 2020, Montana Railroad Inc.'s share price was $65.50. They had 90 million shares outstanding, a market-to- book ratio of 2.75. In addition, Montana Railroad had $900 million in outstanding debt, $163.82 million in net income, and cash of $100 million. Calculate the book equity of Montana Railroad. $16.21 billion $5.90 billion $2.14 billion O $3.65 billion

In December 2020, Montana Railroad Inc.'s share price was $65.50. They had 90 million shares outstanding, a market-to- book ratio of 2.75. In addition, Montana Railroad had $900 million in outstanding debt, $163.82 million in net income, and cash of $100 million. Calculate the book equity of Montana Railroad. $16.21 billion $5.90 billion $2.14 billion O $3.65 billion

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In December 2020, Montana Railroad Inc.'s share price was $65.50. They had 90 million shares outstanding, a market-to- book ratio of 2.75. In addition, Montana Railroad had $900 million in outstanding debt, $163.82 million in net income, and cash of $100 million. Calculate the book equity of Montana Railroad. $16.21 billion O $5.90 billion $2.14 billion $3.65 billion
Transcribed Image Text:In December 2020, Montana Railroad Inc.'s share price was $65.50. They had 90 million shares outstanding, a market-to- book ratio of 2.75. In addition, Montana Railroad had $900 million in outstanding debt, $163.82 million in net income, and cash of $100 million. Calculate the book equity of Montana Railroad. $16.21 billion O $5.90 billion $2.14 billion $3.65 billion
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