On October 1, Ivanhoe Corporation’s stockholders’ equity is as follows. Common stock, $5 par value   $382,000 Paid-in capital in excess of par—common stock   20,000 Retained earnings   166,000     Total stockholders’ equity   $568,000 On October 1, Ivanhoe declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.             (a) Compute the par value per share (1) before the stock dividend and (2) after the stock dividend. Par value before the stock dividend   $   Par value after the stock dividend   $

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.