What Is the Net Value of Common Equity for a Firm

question 39

Multiple Choice

What is the net value of common equity for a firm with 3 million shares issued,1 million shares outstanding,$4 million of retained earnings,$2 million of treasury stock at cost,$1 million in additional paid-in capital,and a $1 par value per share?

• A) $4 million
• B) $6 million
• C) $8 million
• D) $10 million

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Definitions:

Dishonest Employees

Workers who engage in fraudulent or unethical behavior, potentially harming their employer financially or reputationally.

Fraudulent Activity

An illegal act involving the intentional deception or misrepresentation that an individual or entity makes to gain a benefit or advantage.

Debit Memorandum

A document or entry recorded by an entity that decreases a balance in another's account, typically used in adjustments between businesses.

Cash Balance

The amount of cash a company has on hand at a given time, reflecting its liquidity.