Purchase Solution

Bio-Tech Company- value additional paid-in-capital? equity?

Not what you're looking for?

Ask Custom Question

The equity accounts of Bio-Tech Company is as follows:

Common Shares ($1.00 per value) - $10,000.000
Additional paid-in-capital $50,000.000
Retained earnings $125,000.000
Treasury shares at cost $1,000.000

Net common equity 186,000.000

Suppose the firm sells 2,000,000 new (additional) shares at a price of $19 per share. What is the new value of Common Shares account? What is the new value of the additional paid-in-capital account? what is the new value of the net common equity?

Purchase this Solution

Solution Summary

Instructional notes and computations are shown for your study.

Solution Preview

See attached for correct formatting.

Amount Change New Amount
Common stock, par account $10,000 $2,000,000 $2,010,000
Additional paid in capital in excess of par ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.