The current market value of the assets of Thompson Pumps is $37.29 million. The market value of the equity is $6.87 million. What is the market value of the ﬁrm's debt?
A) $29.71 million
B) $30.42 million
C) $36.87 million
D) $42.13 million
E) $44.16 million

Question

Quizplus · Accepted Answer

Market value of the firm's debt = Total assets - Market value of equity
= $37.29 million - $6.87 million
= $30.42 million

The Current Market Value of the Assets of Thompson Pumps