The balance sheet for Levy Corp. is shown here in market value terms. There are

Question

The balance sheet for Levy Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding.

  

  

Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

  

Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

  

The balance sheet for Levy Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding.

Explanation / Answer

(1)

Current stock price = 384,000/8,000 = 48

(2)

New stock price = 48 - 1.7 = 46.3

(3)

30,400

=44,000-8,000*1.7

340,000

370,400

Market Value Balance Sheet   Cash $

30,400

=44,000-8,000*1.7

  Equity $ 370,400   Fixed assets

340,000

     Total $

370,400

     Total $ 370,400

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