Wares encountered severe legal problems

Assignment Help Financial Management
Reference no: EM131308195

Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,180,000 that is currently appraised at $1,380,000. The equipment originally cost $660,000 and is currently valued at $407,000. The inventory is valued on the balance sheet at $350,000 but has a market value of only one-half of that amount. The owner expects to collect 99 percent of the $195,200 in accounts receivable. The firm has $11,300 in cash and owes a total of $1,380,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

Reference no: EM131308195

Questions Cloud

What is the present value of the annuity : A 20-year annuity pays $1,700 per month, and payments are made at the end of each month. The interest rate is 6 percent compounded monthly for the first Five years and 4 percent compounded monthly thereafter. What is the present value of the annuity?
Preferred stocks beta with respect to the market : Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received? Suppose that you own IBM preferred stock that pays an annual, fixed, and perpetual dividend of $10 w..
The bonds make semiannual payments : Heginbotham Corp. issued 15-year bonds two years ago at a coupon rate of 7.6 percent. The bonds make semiannual payments. If these bonds currently sell for 106 percent of par value, what is the YTM?
Asset qualifies as a five-year recovery asset : Reversing Rapids Co. purchases an asset for $192,637. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has..
Wares encountered severe legal problems : Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,180,000 that is currently appraised at $1,380,000. The equipment originally cost $660,000 and is ..
Determine the effect of its inventory turnover ratio : Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2013 sales (all on credit) were $168,000 and its cost of goods sold was 75% of sales. It turned over its..
Interest rate that is commonly quoted by lender is referred : The interest rate that is most commonly quoted by a lender is referred to as which one of the following? You pay personal taxes on your calculated ____ income.
Current interest rate on this type of bond : 6 years ago Blue lake Corp. issued 30 years to maturity zero coupon bonds with a par value of $5,000. the current interest rate on this type of bond is 10.71 percent compounded annually. What is the current price of the bond
The riskless hedged investment is created : Madeline Manufacturing Inc.’s current stock price is $45 per share. Call options for this stock exist that permit the holder to purchase one share at an exercise price of $40. These options will expire at the end of 1 year, at which time Madeline’s s..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the standard deviation of the number of claims

You have 100 business clients who own businesses that you insure against floods. The probability density function of the number of claims k per year for these 100 clients when rainfall is at or below average (which happens 50% of the time) is describ..

  What is the companys new required rate of return

Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free r..

  What should the share price be in one year

A share of stock sells for $49 today. The beta of the stock is 1.4, and the expected return on the market is 17 percent. The stock is expected to pay a dividend of $.80 in one year. If the risk-free rate is 4.8 percent, what should the share price be..

  The amount left for distribution to general unsecured credit

Three general unsecured creditors are owed $45,000 as follows: Easy Does It Rentals, $15,000; Make Me a Deal Furniture, $5,000; and TV’s r Us, $25,000. After all other creditors are paid, the amount left for distribution to general unsecured creditor..

  A differential analysis

A differential analysis: A. can be used to compare an alternative to the status quo. B. can be used to compare any set of alternatives. C. is easier to comprehend if a consistent frame of reference is employed. D. B and C. E. A, B, and C.

  Return on the investment is desired

M. Poirot wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate of 8.6% with bond interest payable semiannually. Six years ago, $1431 was paid for the bond. At least a 12% return (yield) on the investment is desired. ..

  What rate of return did you earn on the bond during the year

Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 6% when the market interest rate is 6%.- What rate of return did you earn on the bond during the year?

  Outstanding puckett corporation bond-yield to maturity

It is now January 1st 2008 and you are considering the purchase of an outstanding Puckett corporation bond that was issued on January 1 2006. The Puckett bond has a 9.5 percent annual coupon and a 30-year original maturity (it matures on December 31,..

  Keep the equilibrium federal funds rate unchanged

Suppose that banks increase their demand for reserves. Show how the Fed can offset this change through open market operations in order to keep the equilibrium federal funds rate unchanged.

  The maturity of the bonds

Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 7.6%. Now, with 8 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has in..

  What will be annual payment if you sign this mortgage

A house you are looking to purchase costs $200,000. You have $29,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requries annual payments..

  What is the stocks return for the coming year

The current price of a stock is $20 and last years price was $18.87. The latest dividend is $2. Assume a constant growth rate in dividends and stock price. What is the stocks return for the coming year?

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