Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point, Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings. Further, assume that the market value of the company's common stock is $10 per share. Required: a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
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Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point,
Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings.
Further, assume that the market value of the company's common stock is $10 per share.
Required:
a. Determine the number of shares of stock that is outstanding.
b. Determine the book value per share.
Transcribed Image Text:Grayson Corporation has 500,000 shares authorized, 428,000 shares issued, and 28,000 shares of treasury stock. At this point, Grayson Corporation has $880,000 of assets, $216,000 of liabilities, $432,000 of common stock, and $232,000 of retained earnings. Further, assume that the market value of the company's common stock is $10 per share. Required: a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share.
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