QUESTION 7 10 points Save Answer Last Year, a corporation had a book value of eq

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QUESTION 7 10 points Save Answer Last Year, a corporation had a book value of equity of $300 million of USDs, 2.5 million shares outstanding, and a market price of $30 per share. The corporation also had cash of $2.5 million of USDs, and total debt of $250 million USDs. What was the corporation's book debt-equity ratio? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer, or if the answer is $500,000 write enter 500000 as an answer QUESTION 8 10 points Save Answer "Last Year, a corporation had a book value of equity of $300 million of USDs, 2.5 million shares outstanding, and a market price of $30 per share. The corporation also had cash of $2.5 million of USDs, and total debt of $250 million USDs. What was the corporation's market debt-equity ratio?Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer, or if the answer is $500,000 write enter 500000 as an answer. QUESTION 9 10 points Save Answer Last Year, a corporation had a book value of equity of $300 million of USDs, 2.5 million shares outstanding, and a market price of $30 per share. The corporation also had cash of $2.5 million of USDs, and total debt of $250 million USDs. What was the corporation's enterprise value, in million USDs? Note: Express your answers in strictly numerical terms.

Explanation / Answer

7)

Book value debt to equity ratio =Book value of debt /Book value of equity

           = 250/300

            = .83

8)Market value of debt = 250 million

MArket value of equity = 2.5*30 = 75 million

Market debt to equity ratio = 250 /75

                 = 3.33

9)Enterprise value =market value of equity +market of debt -cash and investment

               = [2.5*30] +250 -2.5

                = 75 +250 -2.5

                = 322.5

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