If the total value of a firm is $155,683,690 and it has $25,000,000 of debt, what is the value of its equity?

To determine the value of a firm's equity, you can use the following relationship:

Equity Value = Total Firm Value - Total Debt

In this scenario, the total value of the firm is $155,683,690, and it has $25,000,000 of debt. By subtracting the debt from the total firm value, you arrive at:

Equity Value = $155,683,690 - $25,000,000

Calculating this gives:

Equity Value = $130,683,690

This indicates that the equity of the firm is valued at $130,683,690, which aligns with the choice provided. This calculation accurately reflects how the total value of the firm is allocated between equity and debt, providing a clear insight into the firm’s financial structure. Understanding this is crucial for assessments of company valuation and for making informed investment decisions.