Ted’s Hats issued 20,000 shares of stock for $20 per share.  The par value of the stock was $1 per share.  Calculate the value of capital stock and additional paid-in capital. Group of answer choices A)Capital stock $400,000; additional paid-in capital $0. b)Capital stock $380,000; additional paid-in capital $20,000. c)Capital stock $20,000; additional paid-in capital $380,000. d)Capital stock $0; additional paid-in capital $400,000. E)None of the abov

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.