1. In the Wall Bricks, Inc.’s balance sheet lists net fixed assets as $12 million. The fixed assets could currently be sold for $10 million. Wall Bricks’ current balance sheet shows current assets of $6 million and current liabilities of $3 million. If all the current accounts were liquidated today, the company would receive $4 million cash after paying the $1 million in liabilities. What is the book value of Wall Bricks’ assets today? What is the market value of these assets? 2. Approximately (using the Rule of 72), how many years will it take to double a $3000 investment when interest rates are 4.5% per year? 3. A stock investor deposited $2,000 five years ago in a non-dividend-paying stock. Today the stock is valued at $3,077. What annual rate of return has this investor earned (use annual compounding)?
1. In the Wall Bricks, Inc.’s balance sheet lists net fixed assets as $12 million. The fixed assets could currently be sold for $10 million. Wall Bricks’ current balance sheet shows current assets of $6 million and current liabilities of $3 million. If all the current accounts were liquidated today, the company would receive $4 million cash after paying the $1 million in liabilities. What is the book value of Wall Bricks’ assets today? What is the market value of these assets?
2. Approximately (using the Rule of 72), how many years will it take to double a $3000 investment when interest rates are 4.5% per year?
3. A stock investor deposited $2,000 five years ago in a non-dividend-paying stock. Today the stock is valued at $3,077. What annual
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