General Account Lemmon Inc. lists fixed assets of $100 on its balance sheet. The firm'sfixed assets have recently been appraised at $140. The firm's balancesheet also lists current assets at $15. Current assets were appraised at$16.5. Current liabilities book and market values stand at $12 and thefirm's long-term debt is $40. Calculate the market value of the firm'sstockholder's equity.a. $104.50b. $144.50c. $112.50d. $156.5

To calculate the market value of the firm's stockholder's equity, we use the basic accounting…

Answered: Lemmon Inc. lists fixed assets of $100…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 49E

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Lemmon Incorporated lists fixed assets of $100 on its balance sheet. The firm's fixed assets have recently been appraised at $140. The firm's balance sheet also lists current assets at $15. Current assets were appraised at $16.50. Current liabilities book and market values stand at $12 and the firm's long-term debt is $40. Calculate the market value of the firm's stockholders' equity
Lemon inc. lists fixed assets of 100 on its balance sheet
General Accounting
Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
Scare Train, Inc. has the following balance sheet statement items: current liabilities of $779,470; net fixed and other assets of $1,329,896; total assets of $3,237,746; and long-term debt of $621,991. What is the amount of the firm's net working capital?
The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of 47 and a current ratio of 1.36. Current liabilities are $2,440, sales are $10,600, profit margin is 12 percent, and ROE is 17 percent. What is the amount of the firm's net fixed assets? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Net fixed assets
Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.6. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets Liabilities & Equity $1,040 Debt $400 Equity $640 The debt weight for the WACC calculation is 28.09 %. (Round to two decimal places.) The equity weight for the WACC calculation is 71.91 %. (Round to two decimal places.)
The Rossdale Company has a ratio of long-term debt to long-term debt plus equity of .34 and a current ratio of 1.29. Current liabilities are $1,450, sales are $7,380, profit margin is 8.1 percent, and ROE is 14.3 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A firm has total assets of $638,727, current assets of $203,015, current liabilities of $122,008, and total debt of $348,092. What is the debt-equity ratio? Can you provide the forumla?
Suppose that for 2010 Aquarius company's current assets totaled $60,000; total assets totaled 470,000; current liabilities totaled 72,000; and total liabilities totaled $430,000. Calculate the debt-to-equity ratio for Aquarius for 2010. Calculate the debt-to-equity ratio for Aquarius for 2010. (round your answer to three decimal places.) Prepare the Stockholder's Equity section of the Balance sheet given the following information: Preferred Stock $500,000Paid In Capital in Excess of Par P/S $10,000 Common Stock $700,000 Paid in Capital in Excess of Par C/S $200,000 Retained Earnings $40 0,000 Treasury Stock $40,000 Paid in Capital from Sale of Treasury Stock $5,000 What is the total stockholders' equity based on the following account balances? Common Stock $450,000 Paid-in Capital in Excess of Par $90,000 Retained Earnings Treasury Stock a. $740,000 b. $730,000 c. $720,000 d. $640,000 $190,000 $10,000
Arredondo, Inc., has current assets of $1,349, net fixed assets of $14,811, current liabilities of $355, and long-term debt of $2,610. What is the value of the shareholders’ equity account for this firm? (Hint: Build the Balance Sheet)
Here is a simplified balance sheet for Caterpillar Tractor: Caterpillar Tractor Balance Sheet ($ in millions) Current liabilities 46,838 Long-term debt Current assets $42,527 Long-term assets Total $89,365 Total Market value Market value added Other liabilities Equity Caterpillar has 660 million shares outstanding with a market price of $86 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market-to-book ratio Yes O No GA $ GA $29,752 27,755 14,323 17,535 $89,365 b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) million million c. Has the company created value for shareholders?

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