The authorized share capital of the Alfred Cake Company is 120,000 shares. The equity is currently shown in the company’s books as follows:         Common stock ($2 par value) $ 69,000 Additional paid-in capital   19,000 Retained earnings   39,000 Common equity $ 127,000 Treasury stock (4,000 shares)   13,000 Net common equity $ 114,000     a. How many shares are issued?   b. How many shares are outstanding?   c. How many more shares can be issued without the approval of shareholders?

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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.