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A small firm's balance sheet shows: Cash: $2,000 Short-term investments: $6,000 Inventory: $1,000 Other current assets: $5,000 Long-term assets: $17,000 Book value of equity: $5,000
A small firm's balance sheet shows: Cash: $2,000 Short-term investments: $6,000 Inventory: $1,000 Other current assets: $5,000 Long-term assets: $17,000 Book value of equity: $5,000 There are no other assets. Total current liabilities: $14,000 Long-term debt: (not provided) There is no other debt (total debt only consists of current liabilities and long-term debt). a. Based on the information given, what is the firm's long-term debt? b. What is the firm's enterprise value if the market value of equity is $18,000 and the market value of debt equals the book value of debt? c Using the DuPont Identity, if the firm's net profit margin is 20% and the return on equity is 25%, what must sales be? b(Ctri)
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