1. How are net tangible assets calculated? In your response refer to examples of both types of assets.

2. Calculate the net tangible assets from the following example.

The company has total assets of $1 million,total liabilitiesof $100,000 and intangible goodwill of $100,000.

3. Explain the importance of an accurate calculation of net tangible assets. Relate your answer to a company's calculation of return on assets.

4. Why might relying on the net tangible asset value be misleading across different industries? In your answer compare companies which have high levels of valuable intangible assets.

5. Model-Net Tangible Assets (NTA) per Share Net tangible assets per share (NTA/share) is an extension of NTA that shows, in theory, the money that each shareholder would receive if the company were to liquidate.

From the information below determine whether Keynes Ltd is undervalued or overvalued.

• Reported Total assets of $1 million
• Total liabilities of $500,000
• Intangible assets of $200,000
• Share Price $4
• Total Shares outstanding 100,000

6. Outline how the composition of net tangible assets explains the capital structure decision?