Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 28, Problem 1PS
Summary Introduction

To construct: A balance sheet for G company and calculate shareholders equity.

Expert Solution & Answer
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Explanation of Solution

The balance sheet of company G is as follows:

Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate), Chapter 28, Problem 1PS , additional homework tip  1

The formula to calculate shareholders equity is:

Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate), Chapter 28, Problem 1PS , additional homework tip  2

Hence, the shareholders equity is 76000.

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