LGS P7-18 Book and liquidation value The balance sheer for Gallinas Industries is as follows CHAPTER 7 Seck Valuation 353 Gallinas Industries Balance Sheet December 31 Assets Liabilities and holders equity Cash 540,000 Accounts payable $100,000 Marketable securities 60,000 Notes payable 30,000 Accounts receivable 120,000 Accrued was 30.000 Inventories 160.000 Total current les S160.000 Total current $380.000 Long-term debe $150,000 Land and buildings niet $150,000 Preferred stock $ 80,000 Machinery and equipment 250.000 Cum sock (10,000 charts 260,000 Total fixed amets (net) $400.000 Retained caring 100.000 Total met 5780.000 Total liabilities and muckholders equity $750,000 Additional information with respect to the firm is available: (1) Preferred stock can be liquidated at book value. (2) Accounts receivable and inventories can be liquidated at 90% of book value. (3) The firm has 10,000 shares of common stock outstanding, (4) All interest and dividends are currently paid up, (5) Land and buildings can be liquidated at 130% of book value. (6) Machinery and equipment can be liquidated at 70% of book value. (7) Cash and marketable securities can be liquidated at book value. Given this information, answer the following: 1. What is Gallinas Industries book tulae per share! b. What is its liquidation value per share? c. Compare, contrast, and discuss the values found in parts a and b. LGS P7-19 Valuation with price/carnings multiples for each of the firms shown in the follow- ing table, use the data given to estimate its common stock value employing price/ carnings (P/E) multiples Firm . Expected EPS Pricelarningslip 53.00 4.50 10.0 1.80 2.40 5.10 15.0 C D