Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 2, Problem 10P

a)

Summary Introduction

To determine: M Company’s market capitalization for each year.

Introduction:

Dollar value of a company’s outstanding shares is termed as market capitalization. It is also known as market cap.

b)

Summary Introduction

To determine: M Company’s market-to-book ratio.

Introduction:

Comparing the book value of the firm to its market value is termed as market-to-book ratio.

c)

Summary Introduction

To determine: M Company’s enterprise value.

Introduction:

The modified mode of market capital is termed as enterprise value, which incorporates the cash and debt for obtaining the value of the company.

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Corporate Finance

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