6. Felicia Fish is the sole shareholder in Aquarium City. Her equity in the corporation totals $500,000. Given her use of leverage, however, the total value of Aquarium City is $2 million. Calculate the change in the value of Ms. Fish’s equity in the firm under the following scenarios:

   1. a. The value of her assets rises by 25 percent.

   2. b. The value of her assets rises by 100 percent.

   3. The value of her assets falls by 30 percent.

Answer rating: 100% (QA)

Her total equity value 500000 Total value of assets 2 million or 2000000 Percentage of equ... View the full answer