BA350 Financial Management: 13-8 (Value of Equity) The balance sheet of Hutter Amalgamated

BA350 Financial Management

13-8 Value of Equity
The balance sheet of Hutter Amalgamated is shown below. If the 12/31/2010 value of operations is $756 million, what is the 12/31/2010 intrinsic market value of equity?
Balance Sheet, December 31, 2010 (Millions of Dollars)
Assets Liabilities and Equity
Cash 20.0 Accounts payable 19.0
Marketable securities 77.0 Notes payable 151.0
Accounts receivable 100.0 Accruals 51.0
Inventories 200.0 Total current liabilities 221.0
Total current assets 397.0 Long-term bonds 190.0
Net plant and equipment 279.0 Preferred stock 76.0
Common stockļ¼Œ (par plus PIC) 100.0
Retained earnings 89.0
Common equity 189.0

Total assets $676.0 Total liabilities and equity $ 676.0 $676.0
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