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Consider the attached book-value balance sheet for Federico Inc. for 2022 . (You can open the attached spreadsheet in Excel. You have to "Close" the new window to go back to the test.) The firm faces the statutory 21% flat tax rate. There is no debt in the current liabilities. The firm has 1,750,000 shares outstanding, which have a current market price of $57.50 per share. You wish to determine the market-value of the firm's capital assets. Assume that the market values of the current assets, current liabilities and long-term debt are equal to their book-value. Also, assume that the non-debt longterm liabilities have no market value. Remember to consider the value of the tax shield based on the assumptions of the 1963 Modigliani and Miller relationship. What is the market-value of the firm's capital assets? $83,500,000$130,655,000$152,355,000$100,625,000$139,475,000 Balance Sheet 2022 Federico, Inc. CurrentAssetsCapitalAssetsTotalAssetsCurrentLiabilitiesLong-TermDebtNon-DebtLTLiabilitiesTotalLiabilitiesTotalEquityTotalLiabilities&Equity202211,900,00083,500,00095,400,0008,750,00042,000,00021,700,00072,450,00022,950,00095,400,000 Consider the attached book-value balance sheet for Federico Inc. for 2022 . (You can open the attached spreadsheet in Excel. You have to "Close" the new window to go back to the test.) The firm faces the statutory 21% flat tax rate. There is no debt in the current liabilities. The firm has 1,750,000 shares outstanding, which have a current market price of $57.50 per share. You wish to determine the market-value of the firm's capital assets. Assume that the market values of the current assets, current liabilities and long-term debt are equal to their book-value. Also, assume that the non-debt longterm liabilities have no market value. Remember to consider the value of the tax shield based on the assumptions of the 1963 Modigliani and Miller relationship. What is the market-value of the firm's capital assets? $83,500,000$130,655,000$152,355,000$100,625,000$139,475,000 Balance Sheet 2022 Federico, Inc. CurrentAssetsCapitalAssetsTotalAssetsCurrentLiabilitiesLong-TermDebtNon-DebtLTLiabilitiesTotalLiabilitiesTotalEquityTotalLiabilities&Equity202211,900,00083,500,00095,400,0008,750,00042,000,00021,700,00072,450,00022,950,00095,400,000

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