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3 July, 03:49

Dimeback, inc., is obligated to pay its creditors $5,800 during the year. (leave no cells blank - be certain to enter "0" wherever required.

a.

what is the market value of the shareholders' equity if assets have a market value of $7,100?

market value

$

b.

what is the market value of the shareholders' equity if assets equal $5,200?

market value

+1
Answers (1)
  1. 3 July, 07:13
    0
    A. The market value of the equity if the asset is 7100 is

    7100 - 5800 = 1300

    b. The market value of the equity if the asset is 5200 is

    5200 - 5800 = - 600

    A negative equity means that the company is in debt.
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