Nelson Farms has 12,500 shares of stock outstanding with a market value of $11.20 a share and $68,000 of debt bearing an interest rate of 6.7 percent.Current assets consist of $2,800 in cash,$16,400 in accounts receivable,and $31,200 in inventory.Accounts payable are $27,300.What is the firm's enterprise value?
A)$300,889
B)$205,200
C)$157,600
D)$184,900
E)$242,700

Question

Quizplus · Accepted Answer

Enterprise value = (12,500 × $11.20)+ $68,000 - 2,800 = $205,200

Nelson Farms Has 12,500 Shares of Stock Outstanding with a Market