In 2000, XYZ corporation was formed by selling 100,000 shares of stocks (each $5 ) and issuing 200 bonds (each $1,000 ). Today, XYZ's stock is selling for $40 per share. As a result of changes in the interest rate, the market value of XYZ's bonds in total now is $170,000.

a. What are the firm's book value and market value now?

b. What is the market value of the assets now?

Answer rating: 100% (QA)

Book value of AssetsValue of shares soldValue of bonds issued 10000... View the full answer