A hotel companys balance sheet shows assets of $15,000,000 and liabilities of $6,000,000. The company has issued

Question:

A hotel company’s balance sheet shows assets of $15,000,000 and liabilities of $6,000,000. The company has issued 1.5 million shares of common stock. The total value of common stock recorded on the company’s balance sheet is $60,000,000. What is the par value of one share of this company’s common stock?

a. $40.00

b. $21.00

c. $2.21

d. $4.00

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...