Company X wants to increase its capital to finance the international expansion included in its strategic plan for the period X6-X9. To do so, the company is considering the incorporation of a new shareholder that subscribes 80,000 new shares.

Equity for Company X before this capital increase is:

Capital 3,000,000 (300,000 shares, 10 par value each)

Reserves 1,200,000

Current shareholders do not wish that this capital increase damages the net book value of their current shares.

Required

Can you record the corresponding entry/ies for this capital increase knowing that the new shareholder will pay out the legal minimum required at the same moment as the capital increase, and that he/she will pay the rest within the next two months?

Questions: 1. What is the net book value of a share of Company X before and after the capital increase?

2. Discuss the difference between book value and market value Please urgent