Question: Question 3 Now assume that the apartment complex is dilapidated and cannot be operated after a the operated after January 31, 2018. The owner of
Question 3 Now assume that the apartment complex is dilapidated and cannot be operated after a the operated after January 31, 2018. The owner of the property is willing to sell you the business (including the pro including the property) on February 1, 2018. The owner lists the followine assets and liabilities of the businesses state of the business as of January 31, 2018 (in thousands of $) Cash $10 Rent Receivable lowed by tenants for January 2018) $200 Mortgage Payable (money owed to Bank) Salary Payable (salary owed to employees for November) Building (Scrap (demolition) value) $50 Land $1,200 You are considering buying the business with the intent to liquidate (.e., sell off assets and close the business). Assume that all values given above are what you can currently sell the asset for, or settle the liability at. Because of the risk involved with liquidation, you are looking for a 15% margin (profit) on the investment (pre-tax). How much are you willing to pay for the business? Show calculations
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
