(13–8)

Value of Equity The balance sheet of Hutter Amalgamated is shown below. If the 12/31/2010 value of operations is $756 million, what is the 12/31/2010 intrinsic market value of equity?

550 Part 5: Corporate Valuation and Governance Balance Sheet, December 31, 2010 (Mil l ions of Dollars)

Assets Liabilities and Equity Cash $ 20.0 Accounts payable $ 19.0 Marketable securities 77.0 Notes payable 151.0 Accounts receivable 100.0 Accruals 51.0 Inventories 200.0 Total current liabilities $ 221.0 Total current assets $ 397.0 Long-term bonds 190.0 Net plant and equipment 279.0 Preferred stock 76.0 Common stock

(par plus PIC) 100.0 Retained earnings 89.0 Common equity $ 189.0 Total assets $ 676.0 Total liabilities and equity $ 676.0