Determine current market value of total liabilities

Assignment Help Accounting Basics
Reference no: EM132213760

Question - Imoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7.4 million. The same machinery can be sold today to Shatner Inc. for $4.6 million. Nimoy's current balance sheet shows net fixed assets of $3.6 million and current liabilities of $1.9 million. If all the current assets were liquidated today, the company would receive $1.8 million cash.

Use the balance sheet identity to determine the current market value of Nimoy's total liabilities (current & long-term) given the market value of equity is $4,800,000.

A) 1,800,000

B) 6,400,000

C) 7,010,000

D) 9,810,000

E) 1,600,000

Reference no: EM132213760

Questions Cloud

Differences between a connection-oriented protocol : What is the differences between a connection-oriented protocol and a connectionless protocol? Give an example of an application that would be most suitable
Explain the functional view of an organization : Explain the functional view of an organization and describe each function.
Define the problem or the educational need : Health Promotion Program, Part B: Needs AssessmentThe next step in developing your 10-20 minute health promotion program is to identify the learning needs.
Number of applications in the games market : Virtual reality has found a number of applications in the games market. Is this a suitable use of such technology?
Determine current market value of total liabilities : Use the balance sheet identity to determine the current market value of Nimoy's total liabilities given the market value of equity is $4,800,000
Can a companys constitution be amended : LAW00004 : What is the governing document of a company registered under the Corporations Act 2001 (Cth) and what are its purposes?
Solve common problems related to operating systems : Using an operating system, identify what an operating system is and how it works, and solve common problems related to operating systems.
Future application for analysis of big data : BIAM410 Database Concepts in Business Intelligence - Write a research paper describing a current or future application for analysis of big data
What usability advantages are claimed for touchscreens : What usability advantages are claimed for touchscreens? What disadvantages do they appear to have?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd