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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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