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Incorrect Question 14 Consider the attached book-value balance sheet for Federico Inc. for 2022. 2022 Current Assets Capital Assets Total Assets 11,900,000 83,500,000 95,400,000
Incorrect Question 14 Consider the attached book-value balance sheet for Federico Inc. for 2022. 2022 Current Assets Capital Assets Total Assets 11,900,000 83,500,000 95,400,000 Current Liabilities 8,750,000 Long-Term Debt 42,000,000 Non-Debt LT Liabilities 21,700,000 Total Liabilities 72,450,000 Total Equity 22,950,000 Total Liabilities & Equity 95,400,000 0 / 10 pts BV Balance Sheet.xls Click on the button above to open the dataset in another tab. Then download the data to a file. Be sure to use the Close button on the right-hand corner of the black bar on the top of the tab to return to the quiz. The firm faces the statutory 21% flat tax rate. There is no debt in the current liabilities. The firm has 1,750,000 shares outstanding, which have a current market price of $64.50 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? $83,500,000 $142,905,000 $112,875,000 $164,605,000 O $151,725,000
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