Determine the current market value of nimoy

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Question - Nimoy 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: EM132214601

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