1. A company has a share price of $24.50 and 118 million shares outstanding. Its book equity is $688 million, its book debt-equity ratio is 3.2, and it has cash of $800 million.
How much would it cost to take over this business assuming you pay its enterprise value?
2. In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sales in 2008 and 2009 were steady at $25 million, but the gross margin increased from 2.3% to 3.4% between those years, by what amount was the cost of sales reduced?
3. The Stock market (as measured by the S&P 500 index) declined by 2.6% in the first week of February, 2009. It declined by 8.8% in the second week of February, 2009, and lost 4.8% in the third week of February, 2009. The market gained 5.2% in the last week of February, 2009. Using the weekly market returns, calculate and choose the correct monthly market return for February, 2009.