What is the market value of the corner market

Assignment Help Finance Basics

Reference no: EM13833648

Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in which it is located. This building was built at a cost of $647,000 and is currently appraised at $827000. The counters and fixtures originally cost $148,000 and are currently valued at $66000. The inventory is valued on the balance sheet at $319,000 and has a retail market value equal to 1.3times its cost. Jake expects the store to collect 98 percent of the $21,700 in accounts receivable. The firm has $26,800 in cash and has total debt of $414,700. What is the market value of this firm?
The Widget Co. purchased new machinery 5 years ago for $2.2 million. The machinery can be sold to the Roman Co. today for $2 million. The Widget Co.'s current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the Widget Co.'s assets today is _CA-CL=1,900,000-1,375,000=525,000____ and the market value of those assets is _____.
A year ago, you deposited $40000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as you currently will when you retire 39 years from today?
You are scheduled to receive annual payments of $5500 for each of the next 8 years. The discount rate is 11.5 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?
Theresa adds $1500 to her savings account on the first day of each year. Marcus adds $1500 to his savings account on the last day of each year. They both earn 6.7 percent annual interest. What is the difference in their savings account balances at the end of 36 years?
Some time ago, Julie purchased eleven acres of land costing $35000. Today, that land is valued at $211800. How long has she owned this land if the price of the land has been increasing at 5.6 percent per year? 35000=211800/(1.056)^t 6.05=(1.056)^t Ln(6.05)/ln(1.056)=T

Reference no: EM13833648

Questions Cloud

Ensuring quality assurance in navy recruitment processes : Topic- Ensuring Quality Assurance in Navy Recruitment Processes. Identify a topic and find five links. Provide a one-paragraph description of each link as it relates to your topic

Should the organisation using paas is the best approach : With the business goals and strategy (Erl, Mahmood, & Puttini, 2013, p. 20) are Web-based and mobile applications. Should the organisation using PaaS is the best approach delivery model? Explain why or why not.

What is the probability : Sixty percent of Americans read their employment construct, including the fine print ("Snapshots," usatoday.com, January 20, 2004). Assume that the number of employed who read every word of their contract can be modelled using the binomial distributi..

A bank branch located in a residential area : A bank branch located in a residential area has developed an improved process for serving customers during noon to 1:00 P.M lunch period. The waiting time in minutes (defined as time the customer enters the line to time he or she reaches the teller w..

What is the market value of the corner market : A year ago, you deposited $40000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could yo..

What is coefficient of static friction : What is coefficient of static friction

The jackson engineering company has a training program : The Jackson Engineering Company has a training program designed to upgrade the supervisory skills of production-line supervisors. Because the program is self-administered, supervisors require different numbers of hours to complete it. A study of pa..

Western clothing company produces denim jeans : 1) Western Clothing Company produces denim jeans. Each month the company incurs a fixed cost of $10,000 and variable cost of $8 per pair of jeans. Demand for the jeans depends on the price (P) according to the following relationship: Demand = 1,500 -..

The foundation is scheduled : Cash required for a year must be withdrawn from the bank and set aside at the beginning of that year. The Foundation is scheduled to shut down on January 1, 2014. On that date, all cash left over in its checking account will be withdrawn and paid to ..

User Account

All Pages