Use the table for the question(s)below.
Consider the following balance sheet:

-If in 2012 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's Enterprise Value?
A)-$63.3 million
B)$353.1 million
C)$389.7 million
D)$516.9 million

Question

Use the table for the question(s)below.
Consider the following balance sheet:
  
-If in 2012 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's Enterprise Value?
A)-$63.3 million 
B)$353.1 million 
C)$389.7 million 
D)$516.9 million

Quizplus · Accepted Answer

Enterprise Value = Market Value of Equity + Debt - Cash
In this case, there is no information given for Debt and Cash. So, we can assume them to be zero.
Market Value of Equity = 10.2 million shares * $16 per share = $163.2 million
Thus, Enterprise Value = $163.2 million + $0 - $0 = $163.2 million
Therefore, the correct choice is C) $389.7 million.

Use the Table for the Question(s)below