The book value of a firm's equity is $100 million and its market value of equity is $200 million. the facevalue of its debt is $50 million and its market value of debt is $60 million. what is the market value of assetsof the firm? a) $150 million b) $250 million c) $160 milliond) $260 million

D) $260 million

Explanation:

Using the accounting equation which states that

Assets = shareholder's equity + liabilities

Market value of assets = market value of equity + market value of debt (liabilities)

Market value of equity = $200 million

Market value of debt = $60 million

Market value of assets = $200 million + $60 million

                                      = $260 million

The right option is D) $260 million

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