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How many shares would be outstanding

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Reference no: EM131973242

Let's assume you have opened your business in the form of a sole proprietorship and is very successful... later, you want to expand it, but you need funds. To raise funds, the state where you applied your firm to be incorporated, authorized one billion shares with a face value of $0.10 per share. At this point the book value is also $0.10 per share. However, you can obtain $1 million from 5 investors (most people obtain funds from family members and friends, but it has some risks), each with $200,000 investment. If the face value or par value of the stock is $0.10 per share, how many shares each investor would receive? How many shares would be outstanding?

Reference no: EM131973242

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