Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheet 2022 Federico, Inc. CurrentAssetsCapitalAssetsTotalAssetsCurrentLiabilitiesLong-TermDebtNon-DebtLTLiabilitiesTotalLiabilitiesTotalEquityTotalLiabilities&Equity11,900,00083,500,00095,400,0008,750,00042,000,00021,700,00072,450,00022,950,00095,400,000 Consider the attached book-value batince sheet for Federico Inc, for 2022. (You can open the attached spreadsheet in Excel

image text in transcribed
image text in transcribed
Balance Sheet 2022 Federico, Inc. CurrentAssetsCapitalAssetsTotalAssetsCurrentLiabilitiesLong-TermDebtNon-DebtLTLiabilitiesTotalLiabilitiesTotalEquityTotalLiabilities&Equity11,900,00083,500,00095,400,0008,750,00042,000,00021,700,00072,450,00022,950,00095,400,000 Consider the attached book-value batince sheet for Federico Inc, for 2022. (You can open the attached spreadsheet in Excel You huve to 'Ciose' the new window to go bark to the test.) The frm faces the statutory 21% flat tax rate. There is no debt in the current liablsties. The firm has 1.750 .000 shares outstanding. which have a current inarket price of 557.50 per Share. You wish to determine the market-value of the frrm's caphtal assets. Assume that the market values of the current asgets, current lisbilibes and loneterm debt are equal to the book-value. Also, assume that the non-debt long-term liabilities have no market value. Aemember to consider the value of the tax shiela based on the aswimotions of the 1963 Modigliani and Miller relationship. What is the marbet-value of the firms capital assets? $100,625,000$83,500,000$152,355,000$130,655,000$139,475,000 Balance Sheet 2022 Federico, Inc. CurrentAssetsCapitalAssetsTotalAssetsCurrentLiabilitiesLong-TermDebtNon-DebtLTLiabilitiesTotalLiabilitiesTotalEquityTotalLiabilities&Equity11,900,00083,500,00095,400,0008,750,00042,000,00021,700,00072,450,00022,950,00095,400,000 Consider the attached book-value batince sheet for Federico Inc, for 2022. (You can open the attached spreadsheet in Excel You huve to 'Ciose' the new window to go bark to the test.) The frm faces the statutory 21% flat tax rate. There is no debt in the current liablsties. The firm has 1.750 .000 shares outstanding. which have a current inarket price of 557.50 per Share. You wish to determine the market-value of the frrm's caphtal assets. Assume that the market values of the current asgets, current lisbilibes and loneterm debt are equal to the book-value. Also, assume that the non-debt long-term liabilities have no market value. Aemember to consider the value of the tax shiela based on the aswimotions of the 1963 Modigliani and Miller relationship. What is the marbet-value of the firms capital assets? $100,625,000$83,500,000$152,355,000$130,655,000$139,475,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Balance Sheet 2022 Federico, Inc....

Answered: 1 week ago