1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 94% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 125% of book value. 6. Machinery and equipment can be liquidated at 73% of book value. 7. Cash and marketable securities can be liquidated at book value. Given this information, answer the following: a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? c. Compare, contrast, and discuss the values found in parts a and b. a. Gallinas Industries' book value per share is $ . (Round to the nearest cent.) b. Gallinas Industries' liquidation value per share is $ . (Round to the nearest cent.) C. Compare, contrast, and discuss the values found in parts a and b. (Select the best answer below.) O A. Liquidation value is greater than book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. O B. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. O C. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are overvalued. OD. Liquidation value is below book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value Data Table Gallinas Industries Balance Sheet December 31 Assets Liabilities and Stockholders' Equity Cash $ $ 30,000 70,380 Accounts payable Notes payable Marketable securities 70,380 46,920 46,920 Accounts receivable Accrued wages 125,120 101,660 $ Total current liabilities Inventories 164,220 $ 327,160 $ 179,860 Total current assets Land and buildings (net) Long-term debt Preferred stock Common stock (10,000 shares) $ 93,840 $ 170,565 284,275 $ 454,840 Machinery and equipment 226,780 117,300 Total fixed assets (net) Retained earnings $ 782,000 $ 782,000 Total assets Total liabilities and stockholders' equity Print Print Done Done 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 94% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 125% of book value. 6. Machinery and equipment can be liquidated at 73% of book value. 7. Cash and marketable securities can be liquidated at book value. Given this information, answer the following: a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? c. Compare, contrast, and discuss the values found in parts a and b. a. Gallinas Industries' book value per share is $ . (Round to the nearest cent.) b. Gallinas Industries' liquidation value per share is $ . (Round to the nearest cent.) C. Compare, contrast, and discuss the values found in parts a and b. (Select the best answer below.) O A. Liquidation value is greater than book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. O B. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. O C. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are overvalued. OD. Liquidation value is below book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value Data Table Gallinas Industries Balance Sheet December 31 Assets Liabilities and Stockholders' Equity Cash $ $ 30,000 70,380 Accounts payable Notes payable Marketable securities 70,380 46,920 46,920 Accounts receivable Accrued wages 125,120 101,660 $ Total current liabilities Inventories 164,220 $ 327,160 $ 179,860 Total current assets Land and buildings (net) Long-term debt Preferred stock Common stock (10,000 shares) $ 93,840 $ 170,565 284,275 $ 454,840 Machinery and equipment 226,780 117,300 Total fixed assets (net) Retained earnings $ 782,000 $ 782,000 Total assets Total liabilities and stockholders' equity Print Print Done Done