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I1) Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11)...

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I1) Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11) The firm has 55,000 shares of stock outstanding that sell for $11 a share. What is amount of market value added? A) $474,000 B) $389,000 C) $1,073,000 D) $123,712 12) Instead of increasing its long-term debt by borrowing money from a bank to purchase new stereo equipment, Jay's Jams Inc. decides to lease the equipment on a long-term basis. How will the long-term debt ratio differ if the lease option is selected over the bank-debt option? A) The ratio will be the same regardless of the financing method selected. B) The ratio will be lower under the leasing option. C) The ratio will be higher under the leasing option. D) The ratio effects are unknown without the amount of the lease obligation

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