Homework Answers
Ans :
Book value of total assets = book value of current assets + book value of fixed assets
= $34 million + $ 72 million
= $ 106 million
Book value of current liabilities = $ 52 million
Total book value = Book value of total assets - Book value of current liabilities
= $ 106 million - $ 52 million
= $ 54 million.
Market value of total assets =
Market value of current assets + Market value of fixed assets
= $34 million + $ 102 million
= $ 136 million
Market value of current liabilities = $ 62 million
Total market value = Market value of total assets - Market value of current liabilities
= $ 136 million - $ 62 million
= $ 74 million.
Market to book value = $ 74 million / $ 54 million
= 1.37
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