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How to calculate common shares outstanding if you are given the par value, the paid in capital and the ...?
balance on the common stock account?
Here is the specific problem I'm trying to figure out:
Common stock, $100 par balance = $400,000
additional paid-in capital
what is the common shares outstanding?
1 Answer
- ?Lv 61 decade agoFavorite Answer
You'd divide the amount in common shares - $400,000 by the par value - $100 = 4,000 shares outstanding.
Are you sure it said a par value of $100 not not one dollar? Usually par values are very low.