A company has a share price of $22.15 and 118 million sharesoutstanding. Its market-to-book ratio is 4.2, its book debt-equity ratio is3.2, and it has cash of $800 million. How much would it cost to takeover this business assuming you pay its enterprise value?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
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A company has a share price of $22.15 and 118 million shares
outstanding. Its market-to-book ratio is 4.2, its book debt-equity ratio is
3.2, and it has cash of $800 million. How much would it cost to take
over this business assuming you pay its enterprise value?

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