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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.

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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

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