What is the new value of the net common equity


Problem:

The equity accounts of Bio-Tech Company is as follows:

Common Shares ($1.00 per value) - $10,000.000
Additional paid-in-capital                  $50,000.000
Retained earnings                          $125,000.000
Treasury shares at cost                      $1,000.000

Net common equity                           186,000.000

Suppose the firm sells 2,000,000 new (additional) shares at a price of $19 per share. What is the new value of Common Shares account? What is the new value of the additional paid-in-capital account? what is the new value of the net common equity?

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Finance Basics: What is the new value of the net common equity
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