Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 3, Problem 5P
Summary Introduction

To compute: The outstanding common share of Company H.

Introduction:

The measure to evaluate management’s performance in a company’s operations and growth, market value added considers the market value of the company’s outstanding shares. It reports the market value over and above the book value of those outstanding shares.

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JJ industries has $450 million of common equity on its balance sheet, its stock price is $40 per share, and its market value added is $50 million. How many common shares are currently outstanding?
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