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They are relative to the valuation of the company and the shares issued by the company. So for example if company has 2 million common shares and the valuation of a company is 4 million dollars then each common share is worth $2. Usually valuation of company occurs upon financing and that can vary, based on how well can you sell part or all your company, so for example if you are inquiring financing of $400,000 of the company at pre-money valuation of $4 million, that means that the post money valuation is $4.4 million, you can then either issue more shares for the same pirce of $2 per share or sell some of your own for $2.2 a share, because share prices is calculated post money. However when you do get financing, most investors would rather you issue preferred shares for the same price, because they will get more privileges with the preferred shares.

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You just got a dividend of 30 shares of preferred stock on your XYZ common stock You had purchased 200 shares of XYZ stock for 12000 On the date of dividen the market value of the common stock w?

Market value of common stock = 12000 / 200 = 60 per share Preferred shares are different from common shares


What is the journal entry for a stock issue?

Issuing Par Value Common Stock for Cash (assume par value is $1) dr. Cash $1.00 cr. Common Stock $1.00 to record issuance of 1 share of $1 par common stock if sold for more than par value (Assuming $5) dr. Cash $5 cr. Common Stock $1 Paid-in Capital in excess of par $4 to record issuance of 1 share of common stock in excess of par.


Is Book value of common stock the same as the market value?

No. To get book value per share, you would divide book value by shares outstanding. Market value is whatever the current rate is on the stock exchange.


What is book value of share?

book value per share is total stockholders equity divided by total number of shares of preferred stock and common stock.


When common stock is issued in exchange for an asset that is not cash the transaction should be recorded at?

When common stock is issued in exchange for an asset that is not cash, the transaction should be recorded at the fair market value of the asset received or the fair value of the stock issued, whichever is more clearly evident. If the fair value of both the stock and the asset can be determined, the transaction is typically recorded using the fair value of the asset. This ensures that the financial statements reflect an accurate representation of the value exchanged in the transaction.

Related Questions

What is the value of the common stock as of September 29 2008?

Value of each share of Mckesson common stock on September 28th 1981


How do you calculate Book value of common stock?

the book value of common stock calculated as the following : book value = assets - liabilities and the result is divided by the number of stocks.


Is preferred stock considered to be more like common stock or bonds?

Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.


The par value of common stock must always be equal to its market value on the date the stock is issued?

False


You just got a dividend of 30 shares of preferred stock on your XYZ common stock You had purchased 200 shares of XYZ stock for 12000 On the date of dividen the market value of the common stock w?

Market value of common stock = 12000 / 200 = 60 per share Preferred shares are different from common shares


The effect of a stock dividend is to?

To increase the book value per shear of common stock


TCI Satellite EntertainmentInc you have the common stock in front of you what is it worth?

I have 18 shares of common stock in this company. What is the current value?


Common stockholders do not have the right to?

Common stock holders do not have the right to choose a stock's par value. That accounting decision lies with the company itself.


What is the journal entry for a stock issue?

Issuing Par Value Common Stock for Cash (assume par value is $1) dr. Cash $1.00 cr. Common Stock $1.00 to record issuance of 1 share of $1 par common stock if sold for more than par value (Assuming $5) dr. Cash $5 cr. Common Stock $1 Paid-in Capital in excess of par $4 to record issuance of 1 share of common stock in excess of par.


Is Book value of common stock the same as the market value?

No. To get book value per share, you would divide book value by shares outstanding. Market value is whatever the current rate is on the stock exchange.


What is book value of share?

book value per share is total stockholders equity divided by total number of shares of preferred stock and common stock.


What was the value of one Texas utilities common stock share in June 1990?

what was the price of a share of TXU stock in 1990