ABC Corporation has a debt-to-equity ratio of 1.5 and total assets of P4,000,000. All assets are valued at market value except the building (book value = P1,000,000) and the piece of land (BV = P500,000) where the building is on. The building has floor space of 5,000 square feet and each square feet has sound value of P250. The land has an index value of 1.75 from its purchase date. How much is the equity value of the corporation based on the updated values?
ABC Corporation has a debt-to-equity ratio of 1.5 and total assets of P4,000,000. All assets are valued at market value except the building (book value = P1,000,000) and the piece of land (BV = P500,000) where the building is on. The building has floor space of 5,000 square feet and each square feet has sound value of P250. The land has an index value of 1.75 from its purchase date. How much is the equity value of the corporation based on the updated values?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corporation has a debt-to-equity ratio of 1.5 and total assets of P4,000,000. All assets are valued at market value except the building (book value = P1,000,000) and the piece of land (BV = P500,000) where the building is on. The building has floor space of 5,000 square feet and each square feet has sound value of P250. The land has an index value of 1.75 from its purchase date. How much is the equity value of the corporation based on the updated values?
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