A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and a book value per share of $8.00. What is the total market value of the firm's equity? O$ 100,000 O$ 37,500 O$ 112,500- O$ 900,000 O $1,200,000

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 13P: The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public...
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A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and a
book value per share of $8.00. What is the total market value of the firm's equity?
O$ 100,000
O$ 37,500
O$ 112,500
O$ 900,000
O $1,200,000
Transcribed Image Text:A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and a book value per share of $8.00. What is the total market value of the firm's equity? O$ 100,000 O$ 37,500 O$ 112,500 O$ 900,000 O $1,200,000
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