Bronson Inc. has 300,000 shares authorized, 175,000 shares issued, and 25,000 shares of treasury stock. At this

Question:

Bronson Inc. has 300,000 shares authorized, 175,000 shares issued, and 25,000 shares of treasury stock. At this point, Bronson has $820,000 of assets. $250,000 liabilities, $400,000 of common stock, and $170,000 of retained earnings. Further, assume that the market value of Bronson’s common stock is $6 per share.

Required
a. Determine the number of shares of stock that is outstanding.
b. Determine the book value per share.
c. Provide a rational explanation for the difference between the book value per share and the market value per share of Bronson Inc. common stock.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

Fantastic news! We've Found the answer you've been seeking!