In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. Perrigo's book value of equity is closest to: A) $952.16 million B) $3,580.14 million C) $4,168.06 million D) $4,425.15 million

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In November 2009, Perrigo Co. (PRGO) had a share price of $39.20.  They had 91.33 million shares outstanding, a market-to-book ratio of 3.76.  In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million.

Perrigo's book value of equity is closest to:

A) $952.16 million

B) $3,580.14 million

C) $4,168.06 million

D) $4,425.15 million

Expert Solution
Step 1

Share price = $39.20

Number of shares = 91.33 million

Market-to-book ratio = 3.76

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