What is the book value of shareholders equity

Assignment Help Finance Basics
Reference no: EM133003197

Six years ago, Jason Distributors purchased a mailing machine at a cost of $370,000. This equipment is currently valued at $173,300 on today's statement of financial position but could actually be sold for $212,500. This is the only fixed asset the firm owns. Net working capital is $131,000 and long-term debt is $83,100. What is the book value of shareholders' equity? Show calculations in detail

Reference no: EM133003197

Questions Cloud

Estimate the eva by the firm in 2020 : West Island Inc. has asked you to compute the economic value added (EVA) by the firm in 2020.The firm had a book value of equity at the end 2020 of $1.2 million
Discuss the role of risk-free assets in the markowitz : Chris is applying Markowitz Portfolio Theory (MPT) and Capital Asset Pricing Model (CAPM) for managing his portfolio.
What is the rate of return on equity investor : Y, Inc. has no debt right now. You project that this company can generate EBIT of 10 million per year for the next few years. There is no depreciation. You plan
Main advantage and disadvantage to accepting a balance : Everyone receives offers in the mail from credit card companies advertising low rates on transfer balances, 0% interest for the first 6 months on these balances
What is the book value of shareholders equity : Six years ago, Jason Distributors purchased a mailing machine at a cost of $370,000. This equipment is currently valued at $173,300 on today's statement of fina
How are rates of return used in finance and investment : How are Rates of Return used in finance and investment to evaluate assets and liabilities? Is a higher rate or return better or a lower rate of return better fo
Calculate the value of macaulay duration : I. Calculate the value of Macaulay's duration for a 10-year, $1000 par value bond purchased today at a yield to maturity of 14% and a coupon rate of 10%.
What is stone two-index model : Can you explain for me "What is Stone (1974) Two-Index Model", and discuss the model, sources of data etc.
What is kellie profit per share : Kellie buys a call option with a strike price of $95 that expires on November 30. The option premium is $1.83 per share. At expiration, the stock is trading for

Reviews

Write a Review

Finance Basics Questions & Answers

  How much equity financing is required for next year

The firm does not pay any dividends. Sales are expected to increase by 3.5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

  What is its cash flow to the firm

Suppose the cash flow from operations of the Knoxville Company is $200 million and the company had capital expenditures of $50 million during this period. If Knoxville has no debt in its capital structure, what is its cash flow to the firm? What i..

  What is kanos filing status

Assume the original facts except that Kano's parents, not Kano, paid more than half of the cost of maintaining the home in which Kano and his children live. What is Kano's filing status?

  What is the decision to be made to generate profit

Calculate the expected value for the profit associated with the two expansion alternative. What is the decision to be made to generate profit.

  Find equal proportions in gold and stocks in terms of mean

You are in a world where there are only two assets, gold and stocks. You are interested in investing your money in one, the other or both assets.

  What is this firm''s market-to-book ratio

The firm has total debt with a book value of $55 million, but interest rate declines have caused the market value of the debt to increase to $65 million. What is this firm's market-to-book ratio?

  Philosophy of public finance

1. Assess the philosophy of public finance. 2. Compare and contrast governmental accounting with non-governmental accounting.

  Describe the budget of the agency

Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

  Issue new stock to finance its capital budget

What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

  What fraction of the payment made at the end

Your company is planning to borrow $1,750,000 on a 3-year, 16%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal plac..

  Why such a small decline in asset value is a major concern

Explain/show mathematically why such a small decline in asset value is a major concern.

  Maximum price per share-home place? hotels

Home Place? Hotels, Inc., is entering into a? 3-year remodeling and expansion project. The construction will have a limiting effect on earnings

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