Question

Self-Test Save & Exit( Sub- 5.00 points The equity section of a firm's market velue balance sheet has common stock of $s the im repurchases $35.000 of stock, what wil be the new market vevolue capital surplus of $218.300, and retained eamings of $329,700 The frm's stock sells for $41 a share O $548 571 O $578450 $599.000 O $598346 O 5564 000 oe圈曲@G 頎 무 3/12018
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Answer 1

Market value of common stock = $51,000

Add Capital Surplus = $218,300

Add Retained Earnings = $329700

Total value =$599,000

Less Stock Repurchase = $35,000

New Market Value of firm's equity = $564,000 (last option)