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How is the par value of common stock revalued after an acquisition changes the par value of the outstanding shares, and the additional paid in...
How is the par value of common stock revalued after an acquisition changes the par value of the outstanding shares, and the additional paid in capital in increased.
Question: Stock was traded at 20/share at time of exchange.
Par Value of shares outstanding before acquisition = $200000
Par Value of shares outstanding after acquisition = $250000
Additional Paid-in Capital before acquisition = $350000
Additional Paid-in Capital after acquisition = $550000
Based on the information was is the par value of the stock.
My text didn't cover any specific equations so I am most likely missing a concept here but after reviewing the chapter that covers it I still have no idea what to do. I need to know how to do the math to get the correct answer.
