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Merrimac Brewing Company's Total Assets Equal $18 Million

Question 64

Multiple Choice

Merrimac Brewing company's total assets equal $18 million. The book value of Merrimac's equity is $6 million. Excess cash is $200,000. The market value of Merrimac's equity is $10 million. It's Debt to Enterprise Value ratio is .5. What is the book value of Merrimac's interest- bearing debt?


A) $5 .25million
B) $10.2 million
C) $15 million
D) $20.4 million

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