Lemmon Inc

question 51

Multiple Choice

Lemmon Inc. lists fixed assets of $100 on its balance sheet. The firm's fixed assets have recently been appraised at $140. The firm's balance sheet also lists current assets at $15. Current assets were appraised at $16.5. Current liabilities book and market values stand at $12 and the firm's long-term debt is $40. Calculate the market value of the firm's stockholders' equity.

• A) $156.5
• B) $112.50
• C) $104.50
• D) $144.50

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Definitions:

Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences, the values of economic variables will not change.

Investor

A person or organization that invests money anticipating a return on their investment.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Perceived Budget Line

The subjective view of the combination of goods and services that a consumer can purchase with their available resources, based on their perception of their budget.