Barn Lumber has 2 million shares of common stock outstanding the stuff for $70 a share of a company has formally dollars of common equity on the balance sheet what is the MVA?

Respuesta :

Answer: -$6,000,000

Explanation:

Your question is incomplete and I could not find the details for this particular question so I used a variant of it. You can relate it to yours for solving.

Byrd Lumber has 2 million shares of common stock outstanding that sell for $17 a share. If the company has $40 million of common equity on its balance sheet, what is the company's Market Value Added (MVA)?

Market Value Added = Equity market value - Equity book value

= (2,000,000 * 17) - 40,000,000

= -$6,000,000