Question

The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to liquidate the overfunded portion of Acme’s pension fund. The assets listed below are going to be liquidated. Listed are their face values, liquidation values today, and their anticipated liquidation values one year from now (their fair market values).

Asset	Face Value			Current Liquidation Value			One-Year Liquidation Value
IBM stock	$	20,000		$	19,900		$	20,500
GE bonds		8,000			7,000			8,700
Treasury securities		25,000			23,000			24,000

Calculate the one-year liquidity index for these securities. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Answer 1

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ke - Microsoft Excel (Product Activation Failed) Formulas File Home Insert Page Layout Data Review View Add-Ins E AutoSum - Cut A Wrap Text Calibri 11 General ECopy Fill Merge & Center $ % Conditional Format Formatting as Table Styles Insert Delete Format Paste B I U 000 Cell Sort & Find & Format Painter Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing fox DQ52 DM DN DO DP DQ DR DS DT DU DA 37 NO O 38 ACME FACE VALUE CURRENT ONE-YEAR 39 LIQUIDITY INDEX BASED LIQUIDATION LIQUIDATION NO O WEIGHTS VALUE VALUE 40 ASSET FACE VALUE B*C/D 41 A В D 20000 42 IBM STOCK 0.3774 19900 20500 0.366314 GE BOND 7000 0.121449 43 8000 0.1509 8700 44 TREASURY SECURITIES 25000 0.452044 0.4717 23000 24000 1.0000 53200 0.939807 45 53000 49900 46 47 LIQUIDATION INDEX 0.940 48 [rounded to 3 decimals] 49 50 51 52 53 54 55 RESI e LEASING DGM beta PV, FV, ANNUITY DIR right YIELD bond portfolio KE CAPM UTILITY, SHARPE, beta port future INDEX clean coNvexity INTL CAP BUD cap stru WACC erences 130% WA 12:08 TENG 29-10-2019