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. Its Debt to Enterprise Value ratio is .5
What is the book value of Merrimac's interest- bearing debt?
A) $5.25 million
B) $10.2 million
C) $15 million
D) $20.4 million
Answer: B
Business
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