Answer:
Market value of common equity = 530,000 x $27.50 = $14,575,000
Book value of common equity = $5,125,000
Difference = $14,575,000 - $5,125,000 = $9,450,000
Explanation:
In this case, there is need to determine the market value of common equity by multiplying the number of common equity by the current market price.
Then, we will deduct the book value of common equity from the market value of common equity.
