Green Valley Ltd. is a company that specializes in reforestation. The company has cash assets of $80,000 and liabilities of $30,000. Green Valley Ltd. pays off the $30,000 of debt. Green Valley Ltd. borrows another $30,000 and uses the money to buy baby trees. At this point the equity is A. $50,000.00 B. $80,000.00 C. The answer is not available from this list of choices D. $60,000.00 E. $90,000.00
Green Valley Ltd. is a company that specializes in reforestation. The company has cash assets of $80,000 and liabilities of $30,000. Green Valley Ltd. pays off the $30,000 of debt. Green Valley Ltd. borrows another $30,000 and uses the money to buy baby trees. At this point the equity is A. $50,000.00 B. $80,000.00 C. The answer is not available from this list of choices D. $60,000.00 E. $90,000.00
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Green Valley Ltd. is a company that specializes in reforestation. The company has cash assets of $80,000 and liabilities of $30,000. Green Valley Ltd. pays off the $30,000 of debt. Green Valley Ltd. borrows another $30,000 and uses the money to buy baby trees. At this point the equity is
| A. |
$50,000.00 |
|
| B. |
$80,000.00 |
|
| C. |
The answer is not available from this list of choices |
|
| D. |
$60,000.00 |
|
| E. |
$90,000.00 |
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