Tech Start Inc. is a newly formed corporation. The initial equity investment is valued at $250,000, reflecting contributions from several angel investors. Five hundred thousand shares of stock were initially issued. If a par value on the common stock were set at $0.05 per share, show how the initial equity investment would be recorded.

Tech Start Inc. is a newly formed corporation. The initial equity investment is valued at $250,000, reflecting contributions from several angel investors. Five hundred thousand shares of stock were initially issued. If a par value on the common stock were set at $0.05 per share, show how the initial equity investment would be recorded.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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