Stryder, Inc. has 3 million shares outstanding at a current price of $15 per share. The book value of the shares is $10 per share. The firm also has $30 million in par value of bonds outstanding. The bonds are selling at a price equal to 101 percent of par. What is the market value of the firm

Market value of firm = $75,300,000

Explanation:

When a company issues shares, it exchanges it's equity for capital that is required to run its business. The outstanding shares of a company are the number of shares that the company has given out to shareholders.

Value of shares is used to estimate the companie's value.

To get the market value of the firm we use the following formula.

Market value of firm = market value of liabilities + market value of equities.

Market value of firm = (30,000,000 * 1.01) + (3,000,000 * 15)

Market value of firm = 30,300,000 + 45,000,000

Market value of firm = $75,300,000