The Book Value of a Firm's Equity Is $100 Million

question 95

Multiple Choice

The book value of a firm's equity is $100 million and its market value of equity is $200 million. The face value of its debt is $50 million and its market value of debt is $60 million. What is the market value of assets of the firm?

• A) $150 million
• B) $160 million
• C) $260 million
• D) $250 million

---

Definitions:

Political Skill

The ability to understand others and use that knowledge to influence or guide their behavior to obtain desired outcomes within a political or organizational context.

Organizational Goals

The objectives or targets that an organization aims to achieve, typically designed to guide its strategic direction.

Personal

Relating to or affecting a particular person rather than anyone else, or belonging or relating to a single or specific individual rather than a group or an organization.

Lateral

Pertaining to or situated at the side, often used in reference to horizontal movements or relationships within organizations.