Max Corp Has Total Assets of $100 Million and Total Liabilities

question 13

Short Answer

Max Corp. has total assets of $100 million and total liabilities of $30 million. Last year it earned a profit of $3 million. What is owners' equity at Max Corp.?
$3 million
$100 million
$103 million
$73 million
$70 million

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Definitions:

Modified Duration

A measure indicating the sensitivity of a bond's price to changes in interest rates, estimating the percentage price change for a parallel shift in yield curves.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.

Market Efficiency

A concept that describes the degree to which stock prices and other securities' prices reflect all available, relevant information.

Portfolio Manager

A professional responsible for making investment decisions and carrying out investment activities on behalf of vested interests.