Market Value Versus Book Value Acme Bricks Balance Sheet Lists

question 12

Multiple Choice

Market Value versus Book Value Acme Bricks balance sheet lists net fixed assets as $40 million.The fixed assets could currently be sold for $50 million.Acme's current balance sheet shows current liabilities of $15 million and net working capital of $12 million.If all the current accounts were liquidated today,the company would receive $77 million cash after paying $15 million in liabilities.What is the book value of Acme's assets today? What is the market value of these assets?

• A)$12 million, $77 million
• B)$27 million, $92 million
• C)$40 million, $50 million
• D)$67 million, $142 million

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Definitions:

Pricing Objective

Pertains to the goals a company aims to achieve through its pricing strategies, such as maximizing profit, capturing market share, or supporting product positioning.

Household Bleach

A common liquid chemical used in homes to disinfect surfaces, whiten clothes, and remove stains.

Maximizing Current Profit

A business strategy that focuses on generating the highest possible profit in the short term, sometimes at the expense of long-term viability.

Pricing Objective

The financial and marketing goals a company aims to achieve through its pricing strategies.