Exercise 11-4A Capital stock authorized, issued, and outstanding LO 11-2

Enscoe Enterprises, Inc. (EEI) has 280,000 shares authorized, 230,000 shares issued, and 30,000 shares of treasury stock. At this point, EEI has $1,730,000 of assets. $130,000 liabilities, $520,000 of common stock, and $1,080,000 of retained earnings. Further, assume that the market value of EEI's common stock is $10 per share. Required a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI's common stock.

Required A Required B Required C Determine the number of shares of stock that is outstanding. Shares outstanding shares que Required B > Required A Required Required C Determine the book value per share. Book value per share Required A Required B Required Provide a rational explanation for the difference between the book value per share and the market value per share of Eel's comman stock 1. Market value in 2. than the book value is a measure of Istorical cost, while is a measure of current values Required