Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 2, Problem 37P

Some balance sheet information is shown here (all values in millions of dollars) (see MyFinanceLab for the data in Excel format):

Chapter 2, Problem 37P, Some balance sheet information is shown here (all values in millions of dollars) (see MyFinanceLab

  1. What change in the book value of the company's equity took place at the end Of 2015?
  2. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratiomeaningful? Explain.
  3. Find the company's other financial statements from that time online. What was the cause of the change to its book value of equity at the end of 2015?
  4. Does the company's book value of equity in 2016 imply that it is unprofitable? Explain.

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Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)

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