Construct equity account for guaraldi at end of first year

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Reference no: EM131328383

Last year Guaraldi Instruments Inc. conducted an IPO, issuing 2 million common shares with a par value of $0.25 to investors, at a price of $15 per share.

During its first year of operation, Guaraldi earned net income of $0.07 per share and paid a dividend of $0.005 per share.

At the end of the year, the company's stock was selling for $20 per share. Construct the equity account for Guaraldi at the end of its first year in business and calculate the firm's market capitalization.

Reference no: EM131328383

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