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Problem:

We know the following about Radice. Total assets are $120m, D is $40m, E is $60m, preferred stock of $20m, cash is $10m and the # of shares is 1m. We estimate that the market value of equity is 3 times the book value of it. Finally, a fire sale of the firm would bring 40% of the value to the company.

Task:

Question 1: Compute the book value, liquidation value, replacement value and enterprise value per share of Radice. Please provide full description, show your all calculation

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146489

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