What is Tobin’s Q for Smolira Golf? What assumptions are you making about the book value of debt and the market value of debt? What about the book value of assets and the market value of assets? Are these assumptions realistic? Why or why not?

Some recent financial statements for Smolira Golf Corp. follow. Use this information to work this problem.

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SMOLIRA GOLF CORP. 2020 and 2021 Balance Sheets Assets Liabilities and Owners' Equity 2020 2021 2020 2021 Current assets Current liabilities Cash $ 32,653 $ 39,350 Accounts payable $ 34,886 $ 44,285 Accounts Notes payable 18,058 16,848 receivable 16,911 28,877 Inventory 34,495 44,336 Other 18,871 25,619 Total 24 $112,563 Total $ 71,815 $ 86,752 Long-term debt $110,000 $140,000 Owners' equity Common stock and paid-in surplus $ 55,000 $ 55,000 Accumulated Fixed assets retained earnings 288,343 333,683 $343,343 $388,683 Net plant and equipment Total 441,099 502,872 Total liabilities and Total assets $525,158 $615,435 owners' equity $525,158 $615,435