Question

the stockholders equity of a firm: a) is usually the same as the firm market value...

the stockholders equity of a firm:

a) is usually the same as the firm market value

b) is based on current assets cost

c) is based on current liabilities

d) none of the above

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Stockholders Equity means the total Equity investment made by the stockholders in the company. This value comprises of the total common stock as well as preferred stock. This is not related to the current assets or the current liabilities as they are the other part of the balance sheet which is Also included.

Also the market value of the firm is the worth of the company which the investors think the company holds. This is calculated by multiplying the outstanding shares with the current market price of the shares.

Stockholders Equity is calculated by multiplying the outstanding shares with the issued value of the shares.

Therefore the correct option is D i.e None of the above.

If you find the answer helpful please upvote.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An expense a.   decreases assets and liabilities. b.   decreases stockholders’ equity. c.   leaves stockholders’ equity unchanged. d.         is basically the...
An expense a.   decreases assets and liabilities. b.   decreases stockholders’ equity. c.   leaves stockholders’ equity unchanged. d.         is basically the same as a liability
How are deferred taxes recorded on the balance sheet? a. As stockholders’ equity. b. As current...
How are deferred taxes recorded on the balance sheet? a. As stockholders’ equity. b. As current or noncurrent assets or liabilities. c. As noncurrent assets or noncurrent liabilities. d. As current or noncurrent liabilities.
11) The accounting equation is defined as: A) Assets = Liabilities + Stockholders' Equity. B) Assets...
11) The accounting equation is defined as: A) Assets = Liabilities + Stockholders' Equity. B) Assets = Liabilities − Stockholders' Equity. C) Net Income = Revenues − Expenses. D) Liabilities + Revenues = Assets.
The variable Market Value of Equity divided by Total Liabilities in the Altman Z-Score measures which...
The variable Market Value of Equity divided by Total Liabilities in the Altman Z-Score measures which of the following concepts? Select one: A. Current level of efficiency B. Current level of leverage C. Current level of net operating assets D. Current level of profitability 2) Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet Dec. 31, Year 7 Dec. 31, Year 6 Current Assets Cash and cash equivalents $519,159 $274,579 Marketable securities 166,106 187,064 Accounts receivable...
Q1. Firm XYZ is currently financed entirely with equity. The market value of the firm's assets...
Q1. Firm XYZ is currently financed entirely with equity. The market value of the firm's assets and equity is ?? = ?? = 500, and the expected return on the firm's assets and equity is ?? = ?? = 12.5 percent. Suppose the firm issues debt with a value of ? = 200, and uses the proceeds to retire equity. The market value of the firm remains the same, ?? = ?? + ? = 500. If the expected return...
When firms report depreciation to stockholders, they A. always use the same depreciation method that they...
When firms report depreciation to stockholders, they A. always use the same depreciation method that they use for income taxes. B. usually use the same depreciation method that they use for income taxes. C. directly reduce the equipment account for depreciation on the equipment. D. none of the above is correct. When WorldCom, in error, permanently capitalized fees it paid when its customers used phone lines of another firm, A. it overstated its net income. B. it understated its expenses....
The company has the following market values of debt and equity: Market value of debt: $50...
The company has the following market values of debt and equity: Market value of debt: $50 Market value of equity: $50 Therefore, the total market value of the assets is $100. The firm has 10 shares outstanding; therefore, the current price per share is $5. The managers are considering an investment project with an initial cost of 30. They believe that the project should be worth $40. The company announces that it will issue new common stocks to obtain $30....
Current liabilities                            74,979 Stockholders' equity       &nb
Current liabilities                            74,979 Stockholders' equity                         249,222 Common stock                            50,000 Preferred stock (cumulative)                         374,000 Total liabilities                         174,979 Fixed assets                         350,000 Current assets                            50,000 Total assets                         424,201 Debt ratio = ______________ Debt to equity ratio = _________________ Construct a Vertical Common Size balance sheet
At the beginning of the year, Gal Company had liabilities of $50,000 and stockholders’ equity of...
At the beginning of the year, Gal Company had liabilities of $50,000 and stockholders’ equity of $96,000. If assets increased by $40,000 and liabilities decreased by $30,000, what was the stockholders’ equity at the end of the year? Select one: a. $146,000 b. $166,000 c. $186,000 d. $96,000 e. $36,000
Feiler Corporation has total current assets of $515,000, total current liabilities of $379,000, total stockholders' equity...
Feiler Corporation has total current assets of $515,000, total current liabilities of $379,000, total stockholders' equity of $1,089,000, total plant and equipment (net) of $1,063,000, total assets of $1,578,000, and total liabilities of $489,000. The company's current ratio is closest to: Multiple Choice a. 0.78 b. 1.05 c. 1.36 d. 2.17
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT