Answered step by step
Verified Expert Solution
Question
1 Approved Answer
KB Homes (KDH) builds and sells single family homes to first time homebuyers. KBH's Inventory consists of houses being constructed and completed, for sale homes.
KB Homes (KDH) builds and sells single family homes to first time homebuyers. KBH's Inventory consists of houses being constructed and completed, for sale homes. Consider this additional information for the firm: Shares outstanding 2.000.000 Price per share $1.00 Latest Balance Sheet Cash 600.000 Inventory 2.000.000 Other Current Assets 100,000 Net PPT 500.000 Total Assets 3.200.000 Total Current Liabilities 500.000 Long term debt 200.000 Total Liabilities 700.000 Equity (GMI) 2.500.000 As always for GAAP Balance Sheets, Inventory is measured at cost, not sale price. As an awesome analyst, you cstimate that the market value (sale price of KBH's Inventory is $4.000.000. You also bclicvc that the rest of KDH's assets, as reported on the Balance shect, are roughly equal to thier market values. Round your answers to zero decimal places Question 1 0/1 pts What is your estimate for the intrinsic or true value of KBH to owners? 200.000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started