The balance sheet value of assets and liabilities of a natural resources company are $100 million and $82 million, respectively. However, the fair value of assets and liabilities of the company are $112 million and $86 million, respectively. The asset-based valuation of the equity of the company is closest to: $18 million $26 million $112 million

So A - L = E. The "asset-based" approach is described as the fair market value of the company. Or more logically - What it would cost to recreate the business. So in this case $112 - 86m = 26m. Answer B

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  19 Aug 2018 at 12:30 pm
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  So A – L = E. The “asset-based” approach is described as the fair market value of the company. Or more logically – What it would cost to recreate the business. So in this case $112 – 86m = 26m. Answer B
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