Cash Accounts Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Balance Sheet The...

 

Transcribed Image Text:

Cash Accounts Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Balance Sheet The Company Inc. ($000s) 194,200 185,800 Accounts Payable 1,090,400 242,200 Short Term Debt 32,800 177,300 Total Current Liabilities 1,123,200 799,500 Long Term Debt 1,417,300 214,100 Common Stock 6,095,200 Property Plant and Equipment (net) Goodwill 1,079,400 Retained Earnings -86,800 6,455,900 Owners' Equity 6,008,400 Total Assets 8,548,900 Liabilities & Owners' Equity 8,548,900 38 The Company Inc. (see balance sheet, above) has 100 million shares outstanding. The market-to-book ratio is 0.9. How much profit would you earn from taking advantage of this opportunity (Assuming zero transaction costs)? Cash Accounts Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Balance Sheet The Company Inc. ($000s) 194,200 185,800 Accounts Payable 1,090,400 242,200 Short Term Debt 32,800 177,300 Total Current Liabilities 1,123,200 799,500 Long Term Debt 1,417,300 214,100 Common Stock 6,095,200 Property Plant and Equipment (net) Goodwill 1,079,400 Retained Earnings -86,800 6,455,900 Owners' Equity 6,008,400 Total Assets 8,548,900 Liabilities & Owners' Equity 8,548,900 38 The Company Inc. (see balance sheet, above) has 100 million shares outstanding. The market-to-book ratio is 0.9. How much profit would you earn from taking advantage of this opportunity (Assuming zero transaction costs)?