Homework Answers
Answer - (B) - $4.3 billion
Market value of equity = No. of shares outstanding * share price = 116 million * $25.09 = $2910.44 million
Book value of equity = ($2910.44 / 4)*2 = $1455.22 (market to book ratio 4:2)
Book Value of debt = ($1455.22 / 2)*3 = $2182.83 (debt- equity ratio 3:2)
Enterprise value = Market capatilzation + book value of debt - cash
= $2910.44 + $2182.83 - $800
= $4293.07
Round off $4.3 billion
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