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Finance problems 14. In terms of the balance sheet model of the firm, the value of the firm in financial markets is equal to: A.
Finance problems
14. In terms of the balance sheet model of the firm, the value of the firm in financial markets is equal to: A. tangible fixed assets plus intangible fixed assets. B. sales minus costs. C. cash inflow minus cash outflow. D. the value of the debt plus the value of the equity. E. the value of the debt minus the value of the equity. 15. Which one of these would not be paid from cash flow? A. cash dividends. B. repayment of principal on a long-term debt. C. repurchase of outstanding shares of common stock. D. new equipment purchase. E. all of the above. PART III: PROBLEM SOLVING (4 marks each). Solve the following problems and mark the right answer on the answer sheet. Use the following information to answer question 1 below. cash = $5.00 accounts payable = $12.00 other current liabilities = $65.00 accounts receivable = $20.00 inventory = $50.00 net fixed assets = $175.00 long-term debt = $40.00 1. Given the above information, what is the firm's stockholders equity? A. $233. B. $123 C. $143. D. $153. E. none of the aboveStep by Step Solution
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