The firm's book value is the depreciated value of the fixed assets on the firm's books...
The firm's book value is
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the depreciated value of the fixed assets on the firm's books |
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the total equity on the balance sheet |
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the total asset value on the balance sheet |
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the total value of liabilities plus equity on the firm's financial statements |
Homework Answers
Depreciated value of fixed assets is the book value of fixed assets. Total assets do not represent the firm's book value. Total value of liabilities plus equity is also the total assets which is not the firm's book value. Firm's book value is provided by the total equity of the company. The firm's book value is book value of assets less book value of liabilities which is the book value of equity reported in the balance sheet.
Thus, firm's book value is the total equity on the balance sheet.
Add Answer to:
The firm's book value is
the depreciated value of the fixed assets on the firm's
books...
QUESTION 1: Which of the following is NOT one of the components in the DuPont breakdown...
QUESTION 1: Which of the following is NOT one of the components in the DuPont breakdown that determines ROE? profit margin total asset turnover equity multiplier times interest earned QUESTION 3: The firm's book value is the depreciated value of the fixed assets on the firm's books the total equity on the balance sheet the total asset value on the balance sheet the total value of liabilities plus equity on the firm's financial statements
Assume that the following balance sheets are stated at book value. Jurion Co. Current assets $...
Assume that the following balance sheets are stated at book
value.
Jurion Co.
Current assets
$
29,000
Current liabilities
$
6,200
Net fixed assets
34,100
Long-term debt
10,400
Equity
46,500
Total
$
63,100
Total
$
63,100
James, Inc.
Current assets
$
5,700
Current liabilities
$
3,200
Net fixed assets
10,000
Long-term debt
2,500
Equity
10,000
Total
$
15,700
Total
$
15,700
Suppose the fair market value of James's fixed assets is $16,100
versus the $10,000 book value shown. Jurion pays...
Harrison, Inc., has the following book value balance sheet: Balance Sheet Assets Liabilities and equity Current...
Harrison, Inc., has the following book value balance sheet: Balance Sheet Assets Liabilities and equity Current assets $ 140,000,000 Total debt $ 250,000,000 Equity Common stock 30,000,000 Capital surplus 77,000,000 Net fixed assets 415,000,000 Accumulated retained earnings 198,000,000 Total shareholders' equity $ 305,000,000 Total assets $ 555,000,000 Total debt and shareholders' equity $ 555,000,000 a. What is the debt–equity ratio based on book values? b. Suppose the market value of the company's debt is...
Year 2 Year 1 184 68 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total...
Year 2 Year 1 184 68 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment Nitreca Chemicals Inc. Balance Sheet For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Liabilities and equity Current liabilities: Accounts payable Accruals 247 198 Notes payable 562 450 Total current liabilities Long-term debt 550 Total debt Common equity: Common stock Retained earnings Total common equity 1,000 Total liabilities and equity...
(At December 31) 2019 2018 2017 Current assets Tangible fixed assets Intangible assets. Total assets.... $285,000...
(At December 31) 2019 2018 2017 Current assets Tangible fixed assets Intangible assets. Total assets.... $285,000 662,500 40,000 $987,500 $277,500 575,000 45,000 $897,500 $207,000 563,000 50,000 $820,000 Current liabilities.. Noncurrent liabilities. Common stock. Additional paid-in capital. Retained earnings Stockholders' equity Total liabilities and equity $120,000 266,250 100,000 100,000 400,000 600,000 $986,250 $110,000 242,500 100,000 100,000 345,000 545,000 $897,500 $100,000 220,000 100,000 100,000 300,000 500,000 $820,000 2019 2018 2017 (For the years ended December 31) Revenues Expenses .. Net income $970,000...
Case A Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value...
Case A Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value $20,000.00 $130,000.00 $30,000.00 Assume Parent offers $150,000 for 100% of Target's net assets. Case B Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value $30,000.00 $80,000.00 $20,000.00 Assume Parent offers $130,000 for 100% of Target's net assets. Case C Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value $40,000.00 $60,000.00 $60,000.00 Assume Parent offers...
What is the firm's market to book value for 2009? The formula and answer is as...
What is the firm's market to book value for 2009?
The formula and answer is as follows:
$100/[($850,000/25,000)] = 2.9400
Please explain where the $100 comes from and why dividing the
common stock by total current liabilities. Please provide a
thorough explaination of the entire problem.
Snapit Company Income Statement (2009) Sales Cost of goods sold Gross profit Selling and administrative expenses Operating profit Interest expense Income before tax Tas expense Net income $4,000,000 3.040,000 960.000 430.000 530.000 160,000 370,000...
6. Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . ....
6. Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Accounts payable . . . . . . . . . . . . . . . . . . . . . 41 Accounts receivable . . . . . . . . . . . . . ....
12. a. What change in the book value of the company's equity took place at the...
12. a. What change in the book value of the company's equity
took place at the end of 2015? .
b. Is the company's market-to-book ratio meaningful? Is its
book debt-equity ratio meaningful? Explain.
c. Find the company's other financial statements from that time
online. What was the cause of the change to its book value of
equity at the end of 2015? .
d. Does the company's book value of equity in 2016 imply that
it is unprofitable? Explain....
A firm depreciated its assets with regard to an investment to $0.00 book value by the...
A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the project's 15 year life. However, the firm expects to sale the assets to have a scrap market value of $1,200,000 in 15 years. What is the PV of the after-tax salvage value if r = 14% per year, and the firm's tax rate is 28%?
Assume that the following balance sheets are stated at book
value.
Jurion Co.
Current assets
$
29,000
Current liabilities
$
6,200
Net fixed assets
34,100
Long-term debt
10,400
Equity
46,500
Total
$
63,100
Total
$
63,100
James, Inc.
Current assets
$
5,700
Current liabilities
$
3,200
Net fixed assets
10,000
Long-term debt
2,500
Equity
10,000
Total
$
15,700
Total
$
15,700
Suppose the fair market value of James's fixed assets is $16,100
versus the $10,000 book value shown. Jurion pays...
Year 2 Year 1 184 68 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment Nitreca Chemicals Inc. Balance Sheet For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Liabilities and equity Current liabilities: Accounts payable Accruals 247 198 Notes payable 562 450 Total current liabilities Long-term debt 550 Total debt Common equity: Common stock Retained earnings Total common equity 1,000 Total liabilities and equity...
(At December 31) 2019 2018 2017 Current assets Tangible fixed assets Intangible assets. Total assets.... $285,000 662,500 40,000 $987,500 $277,500 575,000 45,000 $897,500 $207,000 563,000 50,000 $820,000 Current liabilities.. Noncurrent liabilities. Common stock. Additional paid-in capital. Retained earnings Stockholders' equity Total liabilities and equity $120,000 266,250 100,000 100,000 400,000 600,000 $986,250 $110,000 242,500 100,000 100,000 345,000 545,000 $897,500 $100,000 220,000 100,000 100,000 300,000 500,000 $820,000 2019 2018 2017 (For the years ended December 31) Revenues Expenses .. Net income $970,000...
Case A Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value $20,000.00 $130,000.00 $30,000.00 Assume Parent offers $150,000 for 100% of Target's net assets. Case B Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value $30,000.00 $80,000.00 $20,000.00 Assume Parent offers $130,000 for 100% of Target's net assets. Case C Target's Books Current Assets Long-term Assets Liabilities Book Value $15,000.00 $85,000.00 $20,000.00 Fair Value $40,000.00 $60,000.00 $60,000.00 Assume Parent offers...
What is the firm's market to book value for 2009?
The formula and answer is as follows:
$100/[($850,000/25,000)] = 2.9400
Please explain where the $100 comes from and why dividing the
common stock by total current liabilities. Please provide a
thorough explaination of the entire problem.
Snapit Company Income Statement (2009) Sales Cost of goods sold Gross profit Selling and administrative expenses Operating profit Interest expense Income before tax Tas expense Net income $4,000,000 3.040,000 960.000 430.000 530.000 160,000 370,000...
12. a. What change in the book value of the company's equity
took place at the end of 2015? .
b. Is the company's market-to-book ratio meaningful? Is its
book debt-equity ratio meaningful? Explain.
c. Find the company's other financial statements from that time
online. What was the cause of the change to its book value of
equity at the end of 2015? .
d. Does the company's book value of equity in 2016 imply that
it is unprofitable? Explain....
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