A firm has $7,500,000 in its common stock account and $2,500,000 in its retained earnings account.The firm issued 100,000 shares of common stock.What was the original issue price if only one stock issue has ever been sold?

Question

Quizplus · Accepted Answer

The original issue price is the total amount of common stock divided by the number of shares issued. In this case, the original issue price is $7,500,000 / 100,000 = $75 per share.

A Firm Has $7,500,000 in Its Common Stock Account and $2,500,000