Suppose that the market value (in thousands of dollars) of Fincorp?s fixed assets in 2019 is $6,000
Question:
Suppose that the market value (in thousands of dollars) of Fincorp?s fixed assets in 2019 is $6,000 and that the value of its long-term debt is only $2,200. In addition, the consensus among investors is that Fincorp?s past investments in developing the skills of its employees are worth $2,900. This investment, of course, does not show up on the balance sheet. What will be the price per share of Fincorp stock?
2018 2019 $4,000 $4,100 Revenue Cost of goods sold 1,600 1,700 500 Depreclatlon 520 Inventorles 300 350 Administrative expenses 500 550 Interest expense 150 150 Federal and state taxes" 400 420 Accounts payable 300 350 Accounts recelvable 400 450 Net fixed assets Long-term debt 5,000 5,800 2,000 2,400 Notes payable 1,000 600 Dividends pald 410 410 Cash and marketable securitles 800 300
Step by Step Answer:
Market Value Balance Sheet 2019 figures in thousands of dollars Assets Liabilities Shareholders Equi...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1260566093
10th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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