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13 August, 04:05

Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11) The firm has 55,000 shares of stock outstanding that sell for $11 a share. What is amount of market value added?

A) $474,000

B) $389,000

C) $1,073,000

D) $123,712

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  1. 13 August, 05:44
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    A) $474,000

    Explanation:

    Since Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000, it means that equity should be $131,000.

    The current price of Balsco's stock is $11 per share and total shares outstanding are 55,000, which results in a total market value of $605,000. If you subtract total equity from the total market value = $605,000 - $131,000 = $474,000
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