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Question
Amber Devices Ltd. has total assets worth $900 million and total liabilities worth $475 million at the end of December 31. What is the amount of money received by the stockholders, if Amber liquidates all of its assets for $850 and pays off all of its outstanding debt at book value?
a. $850 million
b. $475 million
c. $1,325 million
d. $425 million
e. $375 million
Answer
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Related questions
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Q:
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e. Firms with relatively low debt ratios have higher expected returns when business is poor.