Klingon Widgets, Inc., purchased new cloaking machinery three years ago for ($3) million. The machinery can be

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Klingon Widgets, Inc., purchased new cloaking machinery three years ago for \($3\) million. The machinery can be sold to the Romulans today for \($2\) million. Klingon’s current balance sheet shows net fixed assets of \($750,000,\) current liabilities of \($750,000,\) and net working capital of \($600,000.\) If all the current accounts were liquidated today, the company would receive \($1.5\) million cash. What is the book value of Klingon’s assets today? What is the market value?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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