The amount of stockholder's equity is calculated as -
Total stockholder's equity = Common stock issued + Additional paid in capital + Retained earnings - Treasury capital
Total stockholder's equity = $ 12,000 + 11,000 + $ 12,000 - $ 4,000
Total stockholder's equity = $ 31,000
I don’t understand what you are trying to say or what your question is?
Shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.
Shareholders' equity refers to the amount owners of a company have invested in the said company:
- Shareholders' equity includes the money they've directly invested and the accumulation of income that has been accrued in the name of the company as earned since the start of the investment and reinvestment.
- It refers to the ownership of assets that may have liabilities or debts connected to them.
- Shareholder's equity is equal to the net fixed assets of the company subtracted from the long-term debt and added to the net working capital.
- Another way to ascertain shareholders' equity is by subtracting total assets from total liabilities.
Therefore, shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.
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The definition for interest in terms of finance is interest is the cost of borrowing. Therefore the correct option is (B).
<h3>What is Finance?</h3>
Finance refers to the money or the funds required by the company to undertake the business projects. Here, finance is the separate field of the study taught to the management students.
Interest refers to the amount charged to the borrower to the lender on the loan facility provided to them. Every lender charges the rate of the interest according to his will.
Bank also charge the rate of the interest on the loan provided to the customer. Therefore the correct option is (B).
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