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  • Oct 30, 2008, 08:08 PM
    andreyalex
    Total assets
    Dear Sirs,

    I have a question regarding the total assets. Situation - a company has a balance sheet. It shows total assets of $100 and total liabilitiesof $40. How much the company worth in this case scenario? My logical assumption is $60. But the doubt is that the asset total is never equal to the current value of all assets,which means that $60 as a company worth could be wrong.
    Could you clarify it for me?

    Thank you

    Andrey
  • Oct 30, 2008, 08:33 PM
    MLSNC

    I agree with you that the $60 would be the equity. However, there is a difference between the book value of a company (the $60), and the actual worth of the company.
  • Oct 30, 2008, 08:44 PM
    andreyalex

    According to you this it means, that in books it could be $60. From another hand, market value could be less or more. And even $100 (as a company worth) if the market is quite good.
    Am I right?

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