Market value of equity

by | Oct 20, 2021 | Homework Help

Imoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7.4 million. The same machinery can be sold today to  Shatner Inc. for $4.6 million. Nimoy’s current balance sheet shows net fixed assets of $3.6 million and current liabilities of $1.9 million. If all the current assets were liquidated today, the company would receive $1.8 million cash. Use the balance sheet identity to determine the current market value of Nimoy’s total liabilities (current & long-term) given the market value of equity is $4,800,000.A) 1,800,000B) 6,400,000C) 7,010,000D) 9,810,000E) 1,600,000

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