Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point, Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings. Further, assume that the market value of the company's common stock is $10 per share. Required: a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share.
Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point, Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings. Further, assume that the market value of the company's common stock is $10 per share. Required: a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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![Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point,
Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings.
Further, assume that the market value of the company's common stock is $10 per share.
Required:
a. Determine the number of shares of stock that is outstanding.
b. Determine the book value per share.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb8725f1-0fe9-43ac-84c9-781e5eaa8007%2Fc0103d5f-9480-435d-a9bd-ccb015bb952e%2Fzrcjlcq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point,
Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings.
Further, assume that the market value of the company's common stock is $10 per share.
Required:
a. Determine the number of shares of stock that is outstanding.
b. Determine the book value per share.
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