The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.39 per share,
Balance Sheet
Assets Liabilities
Current Assets Current Liabilities
Cash 53 Accounts payable 40
Accounts receivable 23 Notes payable/short-term debt 5
Inventories 17
Total current assets 93 Total current liabilities 45
Long-Term Assets Long-Term Liabilities
Net property, plant,
and equipment 117 Long-term debt 133
Total long-term assets 117 Total long-term liabilities 133
Total Liabilities 178
Stockholders' Equity 32
Total Assets 210 Total Liabilities and 210
Stockholders' Equity
what does this tell you about how investors view this firm's book value?
A) Investors consider that the firm's market value is worth very much less than its book value.
B) Investors consider that the firm's market value is worth less than its book value.
C) Investors consider that the firm's market value and its book value are roughly equivalent.
D) Investors consider that the firm's market value is worth more than its book value.
Answer: C
You might also like to view...
A holder in due course takes a negotiable instrument free of all personal defenses and claims to the instrument, but is subject to claims in recoupment either of the person obligated on the instrument or of a third party.
Answer the following statement true (T) or false (F)
If Rex Corporation issued ten $1,000 bonds issued at 99.75 on the interest date, the entry to record this transaction is :
A) Cash 990.75 Bonds Payable 990.75 B) Cash 9,907.50 Bonds Payable 9,907.50 C) Cash 997.50 Bonds Payable 997.50 D) Cash 9,975 Unamortized bondDiscount 25Bonds Payable 10,000
One concern about the long-term storage of records on a medium other than paper is whether the necessary equipment to access and/or read the record will be available
Indicate whether the statement is true or false.c
The selling formula approach to sales presentations assumes that something is known about the target customer's needs and attitudes.
Answer the following statement true (T) or false (F)