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F Forsythe Inc. has decided to go public. In our first issue of stock we raised $1 Million total by selling 200,000 shares of stock.
F Forsythe Inc. has decided to go public. In our first issue of stock we raised $1 Million total by selling 200,000 shares of stock. Par value was chosen to be $2 per share. Lend our overworked an accountant a hand and fill in the following chart. (8 points)
Common Shares | A) |
Additional Paid-Up Capital | B) |
Retaining Earnings | C) |
Net Common Equity | $4,000,000 |
D) What was the market value of an individual share of stock issued?
E) Assuming we had $400,000 (MV) of debt, what is the market value debt ratio on Forsythe Inc.?
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