Question

Ferry Boat Corporation has the following financial information: Net fixed assets: Book value: $2,500, Market value: $3,000 Net working capital: $700 Current accounts liquidated: $1,500 ABC Corporation has $900 in long-term debt. What is the market value of equity?

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Answer #1

The market value of equity = Market value of assets + Net working capital + Current accounts liquidated - Long term debt

The market value of equity = $3,000 + 700 + 1,500 - 900

The market value of equity = $4,300

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