Klopp Corporation has 2 million shares of common stock outstanding that sell for $19 a share. If the company has $8 million of common equity on its balance sheet, what is the company’s Market Value Added (MVA)?$29,000,000$29,800,000$28,000,000$30,000,000$29,000,000

Respuesta :

Answer:

$30,000,000

Explanation:

The computation of the company’s Market Value Added (MVA) is shown below:

= Number of common stock outstanding shares × selling price share - common equity balance on the balance sheet

= 2,000,000 shares × $19 - $8,000,000

= $38,000,000 - $8,000,000

= $30,000,000

We simply subtract the common equity balance from the market value of common stock so that the market value added could come