Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 above

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

Real Life Money An Honest Guide To Taking Control Of Your Finances

Authors: Clare Seal

1st Edition

1472272293, 978-1472272294

More Books

Students also viewed these Finance questions

Question

2. Are you varying your pitch (to avoid being monotonous)?

Answered: 1 week ago

Question

3. Are you varying your speaking rate and volume?

Answered: 1 week ago