Question

the digby's balance sheet has $128,623,000 in equity. further, the company is expecting $3,000,000 in net income next year. assuming no dividends are paid and no stock is issued, what would their book value be next year?

Answer 1

look below

Step-by-step explanation:

The book value of a company is equal to its total assets minus its total liabilities. If you know the equity of a company and its expected net income for the next year, you can calculate its book value by adding the expected net income to the equity.

In this case, the book value of the Digby company next year would be $128,623,000 + $3,000,000 = $131,623,000. This assumes that there are no changes to the company's assets or liabilities, and that no dividends are paid or stock is issued.