The Water Valley Widget Co. was formed last year by selling 1.02 million shares of common stock. Currently, total equity is $44 million with a common stock account of $2.295 million and a retained earnings account of $4.22 million. A. What was the original stock price?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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The Water Valley Widget Co. was formed last
year by selling 1.02 million shares of common
stock. Currently, total equity is $44 million
with a common stock account of $2.295
million and a retained earnings account of
$4.22 million.
A. What was the original stock price?
B. What is the par value of the stock?
Please write it in words. Quick
Transcribed Image Text:The Water Valley Widget Co. was formed last year by selling 1.02 million shares of common stock. Currently, total equity is $44 million with a common stock account of $2.295 million and a retained earnings account of $4.22 million. A. What was the original stock price? B. What is the par value of the stock? Please write it in words. Quick
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