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Enscoe Enterprises, Inc. (EEI) has 260,000 shares authorized, 190,000 shares issued, and 50,000 shares of treasury stock. At this point, EEl has $700,000 of assets. $140,000 liabilities, $480,000 of common stock, and $80,000 of retained earnings. Further, assume that the market value of EEI's common stock is $6 per share. Required a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEl's common stock. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the number of shares of stock that is outstanding. Shares outstanding shares Required A Required B >

Enscoe Enterprises, Inc. (EEI) has 260,000 shares authorized, 190,000 shares issued, and 50,000 shares of treasury stock. At this point, EEl has $700,000 of assets. $140,000 liabilities, $480,000 of common stock, and $80,000 of retained earnings. Further, assume that the market value of EEI's common stock is $6 per share. Required a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEl's common stock. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the number of shares of stock that is outstanding. Shares outstanding shares Required A Required B >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Enscope Enterprises, Inc. (EEI) Stock Analysis ### Background Information - **Authorized Shares:** 260,000 - **Issued Shares:** 190,000 - **Treasury Stock:** 50,000 shares - **Assets:** $700,000 - **Liabilities:** $140,000 - **Common Stock Value:** $480,000 - **Retained Earnings:** $80,000 - **Market Value per Share:** $6 ### Required Calculations **a. Determine the number of shares of stock that is outstanding.** **b. Determine the book value per share.** **c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI's common stock.** ### Instructions To complete each requirement, enter your answers using the provided tabs: 1. **Required A:** Calculate the number of outstanding shares. 2. **Required B:** Determine the book value per share. 3. **Required C:** Analyze the difference between book value and market value per share. ### Calculation Details - **Outstanding Shares Calculation:** - Formula: Issued Shares - Treasury Stock Please complete each section to compare the financial metrics of EEI effectively.
Transcribed Image Text:### Enscope Enterprises, Inc. (EEI) Stock Analysis ### Background Information - **Authorized Shares:** 260,000 - **Issued Shares:** 190,000 - **Treasury Stock:** 50,000 shares - **Assets:** $700,000 - **Liabilities:** $140,000 - **Common Stock Value:** $480,000 - **Retained Earnings:** $80,000 - **Market Value per Share:** $6 ### Required Calculations **a. Determine the number of shares of stock that is outstanding.** **b. Determine the book value per share.** **c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI's common stock.** ### Instructions To complete each requirement, enter your answers using the provided tabs: 1. **Required A:** Calculate the number of outstanding shares. 2. **Required B:** Determine the book value per share. 3. **Required C:** Analyze the difference between book value and market value per share. ### Calculation Details - **Outstanding Shares Calculation:** - Formula: Issued Shares - Treasury Stock Please complete each section to compare the financial metrics of EEI effectively.
## Enscope Enterprises, Inc. (EEI) Stock Analysis ### Overview Enscope Enterprises, Inc. (EEI) has the following stock and financial details: - **Authorized Shares**: 260,000 - **Issued Shares**: 190,000 - **Treasury Stock**: 50,000 ### Financials - **Total Assets**: $700,000 - **Liabilities**: $140,000 - **Common Stock**: $480,000 - **Retained Earnings**: $80,000 Assume the **market value** of EEI's common stock is **$6 per share**. ### Requirements a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI's common stock. ### Instructions Complete this question by entering your answers in the tabs below. #### Required A - **Determine the number of outstanding shares**: This is calculated as the issued shares minus the treasury stock. #### Required B - **Determine the book value per share**: - Book value is calculated as (Total Assets - Liabilities) / Number of Outstanding Shares. #### Required C - **Provide explanation**: Discuss factors that may cause discrepancies between book value and market value, such as market conditions, investor perception, or company performance expectations. Interact with tabs for inputs: - **Required A** - **Required B** - **Required C**
Transcribed Image Text:## Enscope Enterprises, Inc. (EEI) Stock Analysis ### Overview Enscope Enterprises, Inc. (EEI) has the following stock and financial details: - **Authorized Shares**: 260,000 - **Issued Shares**: 190,000 - **Treasury Stock**: 50,000 ### Financials - **Total Assets**: $700,000 - **Liabilities**: $140,000 - **Common Stock**: $480,000 - **Retained Earnings**: $80,000 Assume the **market value** of EEI's common stock is **$6 per share**. ### Requirements a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI's common stock. ### Instructions Complete this question by entering your answers in the tabs below. #### Required A - **Determine the number of outstanding shares**: This is calculated as the issued shares minus the treasury stock. #### Required B - **Determine the book value per share**: - Book value is calculated as (Total Assets - Liabilities) / Number of Outstanding Shares. #### Required C - **Provide explanation**: Discuss factors that may cause discrepancies between book value and market value, such as market conditions, investor perception, or company performance expectations. Interact with tabs for inputs: - **Required A** - **Required B** - **Required C**
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