Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. The firm has 55,000 shares of stock outstanding that sell for $11 a share. What is amount of market value added?

Respuesta :

Answer:

$ 474000

Explanation:

Market value added = V - K where V is the market value of the firm plus its equity and debts = (55000 × $ 11) + $ 107000 = $ 712000

K is the capital invested which in this case represent the total assets = $ 238000

Market value added = $ 712000 - $ 238000 = $ 474000