Hello,

I was curious as to how on the answer below, the net capital is calculated? Is it due to the outstanding stock shares?

31. A securities rm has the following balance sheet (in millions): Assets Liabilities and Equity lCash $40 Five-day commercial paper $20 Debt securities 300 Bends 550 Equity securities 500 Debentures 2T0 l[lrlzher assets Equity Total assets E Total liabilities and equity m The debt securities have a coupon rate of 6 percent, 20 years remaining until maturity, and trade at a yield of 8 percent. The equity securities have a market value equal to book value, and the other assets represent building and equipment which was recently appraised at $30 million. The company has 1 million shares of stock outstanding and its price is $02 per share. Is this company in compliance with SEC Rule 1513 3-1? The rm's aggregate indebtedness to net capital is [$20 + $550 + $2T0ju'62 = 1355% '1'. 150096