Consider the attached book$-$value balance sheet for

Federico Inc. for $2022.($You can open the attached

spreadsheet in Excel. You have to "Close" the new window

to go back to the test.$)$

BV Balance Sheet.xls darr

The firm faces the statutory $21\%$ flat tax rate. There is no

debt in the current liabilities. The firm has $1,500,000$

shares outstanding, which have a current market price of

$$62\mathrm{.}50$ per share. You wish to determine the market$-$value

of the firm's capital assets. Assume that the market values

of the current assets, current liabilities and long$-$term debt

are equal to their book$-$value. Also, assume that the non$-$

debt long$-$term liabilities have no market value. Remember

to consider the value of the tax shield based on the

assumptions of the $1963$ Modigliani and Miller

relationship. What is the market$-$value of the firm's capital

assets?

$$145,480,000$

$$132,600,000$

$$123,780,000$

$$93,750,000$

$$83,500,000$