Benedict Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can...
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Benedict Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Allen Inc. today for $18 million. Benedict's current balance sheet shows net fixed assets of $15.5 million, current liabilities of $700,000, and net working capital of $226,000. If all the current accounts were liquidated today, the company would receive $1.08 million cash. a. What is the book value of Benedict's assets today? b. What is Benedict's market value of assets? Benedict Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Allen Inc. today for $18 million. Benedict's current balance sheet shows net fixed assets of $15.5 million, current liabilities of $700,000, and net working capital of $226,000. If all the current accounts were liquidated today, the company would receive $1.08 million cash. a. What is the book value of Benedict's assets today? b. What is Benedict's market value of assets?
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Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Posted Date:
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