Dee Dee's Marina is obligated to pay its creditors $6,400 today. The firm's assets have a current market value of $5,900

Dee Dee's Marina is obligated to pay its creditors $6,400 today. The firm's assets have a current market value of $5,900. What is the current market value of the shareholders' equity?    A.  -$600 B.  -$500 C.  $0 D.  $500 E.  $600 Shareholders' equity = Max [($5,900 - $6,400),0]. Since the market value of equity cannot be negative, the answer is zero.

95.

During 2011, RIT Corp. had sales of $565,600. Costs of goods sold, administrative and selling expenses, and depreciation expenses were $476,000, $58,800, and $58,800, respectively. In addition, the company had an interest expense of $112,000 and a tax rate of 32 percent. What is the operating cash flow for 2009? Ignore any tax loss carry-back or carry-forward provisions.    A.  $17,920 B.  $21,840 C.  $30,800 D.  $52,600 E.  $77,840 Earnings before interest and taxes = Net income = $565,600 - $476,000 - $58,800 - $58,800 = -$28,000 Operating cash flow = -$28,000 + $58,800 - $0 = $30,800