QUESTION $1$

What is the net value of common equity for a firm with $6\mathrm{.}5$ million shares issued, $$5\mathrm{.}5$ million of retained earnings, $$4$ million of treasury stock

at cost$,$ $$2$ million in additional paid$-$in capital, and a $$1$ par value per share?

a$.$ $$6$ million

b$.$ $$6\mathrm{.}5$ million

c$.$ $$10$ million

d$.$ $$12$ million