Question1. 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 supposing you pay its enterprise value?
Question2. In year of 2009, an agricultural company introduced the new cropping process which decreased 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?
Question3. The Stock market (as evaluated 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, compute and select the correct monthly markets return for February, 2009.