A Company Had Common Stock with a Total Par Value

question 47

Multiple Choice

A company had common stock with a total par value of $18,000,000 and fair value of $62,000,000; and 7% preferred stock with a total par value of $6,000,000 and a fair value of $8,000,000. The book value of the company was $85,000,000. If 90% of this company's total equity was acquired by another, what portion of the value would be assigned to the non-controlling interest?

• A) $8,500,000.
• B) $7,000,000.
• C) $6,200,000.
• D) $2,400,000.
• E) $6,929,400.

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Definitions:

Biological Relatives

Family members who are related by blood, such as parents, siblings, and offspring, sharing genetic material.

Human Laboratory Studies

Experimental research conducted in controlled lab settings, often involving human participants to understand various aspects of behavior, cognition, and physiology.

Control

The power to influence or direct people's behavior or the course of events.

Third Variables

Factors that are not directly under study but may influence the relationship between the variables being examined in research.