Problemwe know the following about bob amp co total assets, Ask an Expert

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Problem:

We know the following about Bob & Co. Total assets are $1000m, E is $700m, cash is $500m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 70% of the value to the co. The inflation rate has been 4% in the last 13 years for which the firm has operated.

Required:

Question: Compute the book value per share of Bob & Co.

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91175088

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