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) Current One-Year Face Liquidation Liquidation Value $16,000 7,600 33,000 Value Value $14,000 $13,900 6,000 Treasury securities 34,000 32,000 Asset IBM stock GE bonds 8,000 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)) 687 One-year liquidity index

Answer 1

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Home ert Page Layout Formulas Data Review V Add-Ins 義Cut Σ AutoSum , aCopy Format Painter Fill в 1 프 .-. h. Α. ǐEE론困Merge & Center. $, % , conditional Format . Cell- Insert Delete Format Formatting as Table Styles Sort &Find & Ξ ClearFilter Select Clipboard Font Cells dting Alignment DQ38 DM DN DR DS DT DP DU DL 25 26 ACME FACE VALUE CURRENT ONE-YEAR 27 LIQUIDITY INDEX BASED LIQUIDATION LIQUIDATION VALUE ASSET 28 FACE VALUE WEIGHTS VALUE 29 в"C/D 30 IBM STOCK 14000 0.2500 13900 16000 0.21719 0.1429 31 GE BOND 8000 6000 7600 0.11278 32 TREASURY SECURITIES 0.6071 32000 33000 0.58874 56000 1.0000 51900 56600 0.919 34 0.919 35 LIQUIDATION INDEX 36 37 38 39 40 41 42 El /> clean YIELD bond 4bond future INDEX INTL CAP BUD , LEASING , PV, FV, ANNUITY DIR stru WACC RESI ex dN DIV POLICY NAME Sheet! 07:16 17-05-2019