Market value: Reservoir Bottling Company reported the following information at the end of the year. Total current
Question:
Market value: Reservoir Bottling Company reported the following information at the end of the year. Total current assets are worth $237,513 at book value and $219,344 at market value. In addition, plant and equipment have a market value of $343,222 and a book value of $362,145. The company’s total current liabilities are valued at market for $134,889 and have a book value of $129,175. Both the book value and the market value of long-term debt are $144,000. The company’s total assets have a market value of $562,566 and a book value of $599,658. What is the value of the difference between the market value of equity and the book value of equity?
Step by Step Answer:
Fundamentals Of Corporate Finance
ISBN: 9781119795438
5th Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates