The financial statements of Home Depot, Inc., appear in Appendix A of this text. These statements contain information describing the details of the company’s stockholders’ equity.
a. What is the par value of the company’s common stock? Did the common stock originally sell at, above, or below par value? How do you know this?
b. For the most current year shown, how many shares of common stock are authorized? What is the meaning of “authorized shares”?
c. What is the total stockholders’ equity amount for Home Depot for the most recent year reported? How did the unusual situation of negative stockholders’ equity come about, and does this mean that there are no shares of Home Depot stock outstanding?