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JulsSmile [24]
3 years ago
8

Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11) The firm has 55,000 shares of stock

outstanding that sell for $11 a share. What is amount of market value added?
A) $474,000
B) $389,000
C) $1,073,000
D) $123,712
Business
1 answer:
vovikov84 [41]3 years ago
6 0

Answer:

A) $474,000

Explanation:

Since Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000, it means that equity should be $131,000.

The current price of Balsco's stock is $11 per share and total shares outstanding are 55,000, which results in a total market value of $605,000. If you subtract total equity from the total market value = $605,000 - $131,000 = $474,000

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