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AlphaTech Ltd reports fair market values as follows: Item Amount () Fair Market Value of Assets 1,000,000 Fair Market Value of Liabilities 400,000 Net Income
AlphaTech Ltd reports fair market values as follows:
Item | Amount (£) |
Fair Market Value of Assets | 1,000,000 |
Fair Market Value of Liabilities | 400,000 |
Net Income | 150,000 |
Requirements:
- Calculate the Return on Equity (ROE) using the fair market values.
- Create an income statement for AlphaTech Ltd for the year ended 31 December 2021.
- Explain how fair market values can influence investment decisions.
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