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LastLandfill The owners of LastLandfill Inc. have decided to shut down the firm within one month, because it has no space to receive any more

LastLandfill The owners of LastLandfill Inc. have decided to shut down the firm within one month, because it has no space to receive any more garbage. Accordingly, the firm will sell its assets, pay off its liabilities, and return any leftover cash to its shareholders; then it will forever close down. The firm has 2,000,000 shares outstanding (2MM shares), and the share price (after the decision to shut down has been announced) is $2per share. Here is the firms most recent Balance Sheet:

GAAP Balance Sheet (All numbers in 000 unless otherwise noted. IE: Cash balance = 2,000,000 dollars.)

Assets
Cash 2,000
AR 4,000
Inventory 2,000
Net PPE 8,000
Land 3,000
Total Assets

19,000

Liabilities & Equity
AP 2,000
Note 3,000
Loan 1,000
Total Liabilities 6,000
Equity 13,000

Your firm asks you to decide whether or not to buy shares of LastLandfill today. To help you, your boss says to assume that the market value of the firms Inventory is about 50% of its GAAP value, and the value of the net PPE is 75% of its GAAP value. She says the land cannot be sold because it is full of garbage, and that LastLandfill will have to pay land remediation costs of $1,000K before it shuts down. She believes that the market value of all other Assets is as reported on the Balance Sheet.

What is the stock market's estimate of LastLandfill's value to owners?

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