Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Carmen Company has the following equity amounts and no dividends in arrears. Preferred stock, $1,000 par $24 million Common stock, $100 par $20 million Paid-in capital in excess of par $36 million Retained earnings $18 million What is the book value of Carmen's common stock

Sagot :

Answer:

$370 book value.

Explanation:

The computation of the book value of Carmen's common stock is shown below:

= $20 million + $36 million + $18 million

= $74 million.

Now

= $20 million total par value × $100 par value/share

= 200,000 shares

Now

= $74 million ÷ 200,000 shares

= $370 book value.

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.