A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal...

A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal $30,000. What is the book value of the equities for the firm if long-term debt is $7,500?

$18,500

$14,500

$10,500

$18,900

Solutions

Expert Solution

net working capital=current assets-current liabilities

current liabilities=(12000-8000)=$4000

Total assets=Total liabilities+Total equity=$30,000

Total liabilities+Total equity=current liabilities+long term debt+equity

30,000=4000+7500+equity

equity=30,000-4000-7500

=$18500

jeff jeffy answered 1 year ago

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