Question
Current assets = $140,000, net fixed assets = $370,000, long-term debt = $450,000, net working capital = $45,000. If liquidated, current assets will be sold
Current assets = $140,000, net fixed assets = $370,000, long-term debt = $450,000, net working capital = $45,000. If liquidated, current assets will be sold for $120,000 and net fixed assets will be sold for $400,000. If repaid, both current liabilities and long-term debt will cost their book value. What is the market value of shareholders equity?
A.
Below $110,000
B.
Between $110,000 and $90,000
C.
Between $90,000 and $70,000
D.
Between $70,000 and $50,000
E.
Between $50,000 and $30,000
F.
Between $30,000 and $10,000
G.
Between $10,000 and $10,000
H.
Between $10,000 and $30,000
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