Honda Motor Company is the largest producer of motorcycles in the world, as well as a major auto manufacturer Honda included the following items in its 2011 balance sheet (in millions of Japanese Yen, ) Common stockauthorized 7,086,000,000 shares issued 1,811,428,430 shares 86,067 Capital surplus 1...

1 The par value of Hondas shares is 86067000000 181142843 ...

Honda Motor Company is the largest producer of motorcycles in the world, as well as a major

Question:

Honda Motor Company is the largest producer of motorcycles in the world, as well as a major auto manufacturer. Honda included the following items in its 2011 (in millions of Japanese Yen, ¥):
Common stock—authorized 7,086,000,000 shares;
issued 1,811,428,430 shares ......... ¥ 86,067
Capital surplus * ............... 172,529
*Honda uses the term “capital surplus” instead of the preferred terms, additional paid-in capital or capital in excess of
1. What is the of Honda’s common stock?
2. What was the average price per share paid by the original investors for the Honda common stock?
3. How do your answers compare with the ¥3,000 market price of the stock at the end of fiscal 2011? Comment briefly.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...