CIBC has 110 million shares outstanding, with a current share price of $94.50 per share. a) If the firm's market-to-book ratio is 7.85, what is the firm's book value of equity? b) Briefly explain what the market to book ratio tells us about a firm.

CIBC has 110 million shares outstanding, with a current share price of $94.50 per share. a) If the firm's market-to-book ratio is 7.85, what is the firm's book value of equity? b) Briefly explain what the market to book ratio tells us about a firm.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 1DTM

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CIBC has 110 million shares outstanding, with a current share price of $94.50 per share.

a) If the firm's market-to-book ratio is 7.85, what is the firm's book value of equity?

b) Briefly explain what the market to book ratio tells us about a firm.

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