State the stockholders’ equity of the Alphabet Corporation if it has acurrent net profit of $1,500,000, beginning-of-the-period retained earningsof $3,675,000, 1 million shares of common stock issued at a parvalue of $1 per share, and paid-in capital in excess of par of $12.50per share.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.