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 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 par value.
1. What is the par value 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.

  • CreatedFebruary 20, 2015
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