What are the book value of stockholders equity

Assignment Help Finance Basics
Reference no: EM132041736

Question: A& B Electricity Company management has just completed an assessment of the company's assets and liabilities as on 31-12-2016 and has obtained the following information.

a) 1-The firm has total current assets worth $625,000 at book value and $519,000 at market value.

b) Its long-term assets include plant and equipment valued at market for $695,000, While their book value is $940,000.

c) The Company's total current liabilities are valued at market for $543,000, while their book value is $495,000. Both the book value and the market value of long-term debt is $350,000.

d) If the company's total assets are equal to a market value of $1,214,000 (book value of $1,565,000),

From the above information:

What are the book value and market value of its stockholders' equity?

Reference no: EM132041736

Questions Cloud

Help in decision making activities : You have successfully won a project, In depth, Describe how information can be delivered to help in decision making activities?
Strategies that were set up to maintain communication : You have successfully won a project, In depth, Describe the strategies that were set up to maintain communication with the team members.
Team members to projects and day to day work : Does your organization consistently allocate team members to projects and their day to day work? If this is true, how has this impacted the success of project
Guide the conduct of communication for the project : Give at least five principles to guide the conduct of communication for the project.
What are the book value of stockholders equity : A& B Electricity Company management has just completed an assessment of the company's assets and liabilities as on 31-12-2016 and has obtained the following.
Prepare a brief document that you could use : As a project manager prepare a brief document that you could use as a guide for when you write reports.
Project manager of a new project : In your opinion, what should be done to ensure that information that will be used for making decisions is sound (eg checking that information is current)?
What is roa of the loan : A bank has a base lending rate of 10% (BR), and charges a certain customer a 150 basis point risk premium (m). The bank also charges a 1.5% origination fee (f).
Information management techniques were employed : Describe what information management techniques were employed to monitor timelines for the project?

Reviews

Write a Review

Finance Basics Questions & Answers

  How does the current policy compare with the optimal policy

Fullerton Wine Company is a retailer which sells vintage wines. The company has established a policy of reordering inventory every 30 days. A recently employed MBA has considered Fullerton's inventory problem from the EOQ model viewpoint.

  What portion of total payments made during the fourth year

You recently obtained a $135,000, 30-year mortgage with a nominal interest rate of 7.25%. Assume that payments are made a the end of each month. what portion of the total payments made during the fourth year will go towards the repayment of princi..

  Determine the principal outstanding on the mortgage

Determine the monthly additional payments required to buy versus rent (include the monthly opportunity costs determined in part (2) above).

  What is the nominal and effective cost of trade credit

What is the nominal and effective cost of trade credit under the credit terms of 3/15, net 30?

  How much will bill and molly need to invest annually

How much will Bill and Molly need to invest annually to make up their income shortfall? Into what account(s) would you suggest they make the investments?

  What is the investment profitability index

ABC Inc. is considering an investment of $1, 371 million with after-tax cash inflows of $344 million per year for six years and an additional after-tax salvage.

  Determine what will be the value of the firm

M&M and Taxes. Wolfgang can borrow at 7.1 percent. The company currently has no debt, and the cost of equity is 13.8 percent.

  What is the discounted payback period for these cash flows

An investment project has annual cash inflows of $5,700, $6,800, $7,600, and $8,900, and a discount rate of 13 percent.

  Bootstrap game

Bootstrap Game. The Muck and Slurry merger has fallen through. But World Enterprises is determined to report earnings per share of $2.67. It therefore acquires the Wheelrim and Axle Company. You are given the following facts:

  Finding the default risk premium on the corporate bonds

A company's 5-year bonds are yielding 8.45% per year. Treasury bonds with the same maturity are yielding 6.25% per year, and the real risk-free rate (r*).

  What is the expected gain from the acquisition what is the

dublin medical dm a large established corporation with no growth in its real earnings is considering acquiring 100 of

  Debt-capital structure and borrowing costs

You know that the return of Momentum Cyclicals' common shares reacts to macroeconomic information 1.80 more times than the return of the market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd