Ask Question
18 March, 22:49

Parker Inc. is obligated to pay its creditors $33,333 very soon. If the market value of the firm's assets equals $49,700, calculate the residual value owed to the shareholders.

+1
Answers (1)
  1. 18 March, 23:34
    0
    The market value of shareholders' equity is $16,367

    Explanation:

    In this question, we are asked to calculate the residual value owed to shareholders.

    We proceed as follows:

    Firstly, we identify the following;

    Amount payable to creditors = $33,333

    Market value of assets = $49,700

    Mathematically,

    Market value of shareholders equity = Market value of assets - Amount payable to creditors = $49,700 - $33,333 = $16,367
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Parker Inc. is obligated to pay its creditors $33,333 very soon. If the market value of the firm's assets equals $49,700, calculate the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers