Determining the market value of firm


1) John owns Corner Market which he is trying to sell so that he can retire and travel. Corner Market owns building in which it is situated. This building was built at the cost of= $647,000 and is presently appraised at= $827000. Counters and fixtures originally cost= $148,000 and are presently valued at $66000. Inventory is valued on balance sheet at= $319,000 and has retail market value equivalent to 1.3 times its cost. John expects store to gather 98% of $21,700 in accounts receivable. Firm has= $26,800 in cash and has total debt of= $414,700. Determine the market value of this firm?

2) The Widget Co. bought new machinery five years ago for $2.2 million. Machinery can be sold to Roman Co. today for= $2 million. Widget Co.'s present balance sheet illustrates net fixed assets of $2,500,000, present liabilities of= $1,375,000, and net working capital of= $725,000. If all present assets were liquidated today, company would get $1.9 million in cash. Book value of Widget Co.'s assets today is _CA-CL=1,900,000-1,375,000=525,000____ and market value of those assets is _____.

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Finance Basics: Determining the market value of firm
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