A company has a total book value of common stock equal to $850,000, a par value of $3 per share, 50,000 shares issued and outstanding, and the market value of the common stock is $80 a share. What is the company's additional paid-in capital? a) $700,000 b) $1,200,000 c) $400,000 d) $850,000

Corporate Fin Focused Approach
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ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter14: Distributions To Shareholders: Dividends And Repurchases
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A company has a total book value of common stock equal to $850,000, a
par value of $3 per share, 50,000 shares issued and outstanding, and the
market value of the common stock is $80 a share. What is the company's
additional paid-in capital?
a) $700,000
b) $1,200,000
c) $400,000
d) $850,000
Transcribed Image Text:A company has a total book value of common stock equal to $850,000, a par value of $3 per share, 50,000 shares issued and outstanding, and the market value of the common stock is $80 a share. What is the company's additional paid-in capital? a) $700,000 b) $1,200,000 c) $400,000 d) $850,000
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