Reynolds Construction's value of operations is $733 million based on the corporate valuation model. Its balance sheet shows $70 million of short-term investments that are unrelated to operations, $110 million of accounts payable, $145 million of notes payable, $176 million of long-term debt, $50 million of common stock (par plus paid-in-capital), and $170 million of retained earnings. What is the best estimate for the firm's value of equity, in millions? (Enter your answer as a whole number in millions. For example, if you get 33 million as the answer, enter: 33.
Reynolds Construction's value of operations is $733 million based on the corporate valuation model. Its balance sheet shows $70 million of short-term investments that are unrelated to operations, $110 million of accounts payable, $145 million of notes payable, $176 million of long-term debt, $50 million of common stock (par plus paid-in-capital), and $170 million of
(Enter your answer as a whole number in millions. For example, if you get 33 million as the answer, enter: 33.)
Formula:
Value of Equity = Value of operations - Log term debt - notes payable + short term investments.
Deduction of long term debt and notes payable from value of operations and short term investments derives the Value of equity.
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