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Nitella [24]
3 years ago
7

Baldwin's balance sheet has $86,543,000 in equity. next year they expect assets to increase by $4,000,000 and liabilities to dec

rease by $2,000,000. if that happens, what will be baldwin's book value?
Business
1 answer:
Butoxors [25]3 years ago
5 0
The book value is calculated by Equity + Assets - Liabilities, which pretty much give a rough valuation for the company if it got liquidated

In this case, Baldwin's book value would become:

<span>$86,543,000 + $ 4,000,000  + $ 2,000,000 (it's possitive because the liability is decreasing)

= $ 92,543,000</span>
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C. Businesses create goods for product markets to sell.

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Imagine two economies that are identical except that for a long time, economy a has had a money supply of $1,000 billion while e
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The economy with extra money.

If the govt takes no action to counter this, then the particular price index is below the worth level that individuals expected. Various factors can shift both the short-run economy and long-run aggregate supply curve rightwards like an increment within the technology level, a rise within the level of human capital, a rise within the level of existing capital stock, et cetera.

When the economy is doing well, the financial market is additionally certain to have best. Whether or not the economy is declining, the financial market can still do best. A pecuniary resource increase will tend to lift the worth level within the future. A finances increase can also increase national output.

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Financial economists prefer to use market values rather than book values when measuring debt ratios because market values are:__
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Financial economists prefer to use market values rather than book values when measuring debt ratios because market values are a better reflection of current value than historical value. the correct answer is option(b).

Market capitalization is frequently used to refer to market value, which is the price an asset commands on the market. Because they depend on a variety of variables, including the physical working environment, the overall state of the economy, and the dynamics of supply and demand, market values are dynamic in nature.

An asset's book value is determined by the balance in its balance sheet account. Asset values are determined by subtracting any depreciation, amortization, or impairment expenses from the asset's initial cost.

Since market value includes profitability, intangibles, and potential for future growth, it typically exceeds book value for a company. The net asset value investors receive when they purchase shares is measured using book value per share.

The complete question is:

Financial economists prefer to use market values when measuring debt ratios because:

  1. market values are more stable than book values.
  2. market values are a better reflection of current value than historical value.
  3. market values are readily available and do not have to be calculated like book values.
  4. market values are more difficult to calculate which makes financial economists more valuable
  5. None of these.

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<h3>What is a common denominator?</h3>

This refers to the feature that is shared by all members, item, quantity of a subject matter.

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