The Balance Sheet of a firm has the following items of the Right Side: Short Term Debt $4,459 Long Term Debt $2,880 Accounts Payable $3,183 Total Liabilities & Owners Equity $12,523 Other firms in the same industry have an average Market Price of Equity to Book (P/B) ratio of 6. Assuming the firm should have a P/B ratio equal to the average, what should the Market Price of Equity of the firm be? =

The Balance Sheet of a firm has the following items of the Right Side: Short Term Debt $4,459 Long Term Debt $2,880 Accounts Payable $3,183 Total Liabilities & Owners Equity $12,523 Other firms in the same industry have an average Market Price of Equity to Book (P/B) ratio of 6. Assuming the firm should have a P/B ratio equal to the average, what should the Market Price of Equity of the firm be? =

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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