You are analyzing the illiquid stock of a small enterprise, QT Company. In their recently published accounting data they report that the Book Value of Equity is $48,500,000 and they have 22,020,000 shares outstanding. You have decided to compare QT to a close competitor BXZ, Inc., which sells in the market for $6.26 per share. The Book Value of Equity for BXZ is $62,700,000 and they have 37,000,000 shares outstanding. Use the Market-to-Book Ratio for BXZ to make a reasonable estimate of the share price for QT. $3.73 $4.84 $8.14 $19.42

You are analyzing the illiquid stock of a small enterprise, QT Company. In their recently published accounting data they report that the Book Value of Equity is $48,500,000 and they have 22,020,000 shares outstanding. You have decided to compare QT to a close competitor BXZ, Inc., which sells in the market for $6.26 per share. The Book Value of Equity for BXZ is $62,700,000 and they have 37,000,000 shares outstanding. Use the Market-to-Book Ratio for BXZ to make a reasonable estimate of the share price for QT. $3.73 $4.84 $8.14 $19.42

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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