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The equity accounts of ABC firm is as follows: Common Shares ($1 par value) $10 million Additional paid-in capital $50 million Retained Earnings $125 million
The equity accounts of ABC firm is as follows: Common Shares ($1 par value) $10 million Additional paid-in capital $50 million Retained Earnings $125 million Treasury shares at cost ($1 million) Please write your answers for all sections in the space provided below. I want to see your steps for the result. Just showing the result will not be accepted. Additionally, strong similarities in the calculations will be considered as cheating. (a) Calculate the book value per share. (5 pts.) (b) Suppose the firm sells 2,000,000 new (additional) shares at a price of $20 per share. What is the new value of Common Shares account? (5 pts.) (c) Suppose that the firm sells 2,000,000 new shares at a price of $20/share. What is the new value of the additional paid-in-capital account? (5 pts.)
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