The ABC Corporation has fixed assets with a book value of $800 and an appraised market value of about $2,000. Net working capital is $500 on the books, but approximately $700 would be realized if all the current accounts were liquidated. ABC has $600 in long-term debt, both book value and market value. What is the book value of the equity? What is the market value?
The ABC Corporation has fixed assets with a book value of $800 and an appraised market value of about $2,000. Net working capital is $500 on the books, but approximately $700 would be realized if all the current accounts were liquidated. ABC has $600 in long-term debt, both book value and market value. What is the book value of the equity? What is the market value?
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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The ABC Corporation has fixed assets with a book value of $800 and an appraised market value of about $2,000. Net working capital is $500 on the books, but approximately $700 would be realized if all the current accounts were liquidated. ABC has $600 in long-term debt, both book value and market value. What is the book value of the equity? What is the market value?
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