Respuesta :
Purchasing 3,000 of its own shares at $8 will decrease stockholders' equity by $24,000.
Whose equity are the stockholders?
Stockholders' equity describes the assets that are still held by a company after all liabilities have been paid. This amount can also be determined by adding share capital and retained earnings, less treasury stock. It is obtained by deducting total liabilities from total assets.
With given information:
Share purchases = 3,000
Cost of per share= $8
stockholders' equity will decrease by = 3,000 x $8 = $24,000
What does par mean in stocks?
A single common share's par value is determined by the charter of a corporation. It usually has nothing to do with the shares' actual worth. Actually, it's frequently lower. Each stock certificate issued for purchased shares includes the par value.
What is the purpose of par value stock?
The stock price specified in a corporation's charter is known as par value. The idea behind the par value concept was to provide potential investors peace of mind by guaranteeing that the issuing corporation wouldn't sell its shares for less than the par value.
Learn more about par value stock: https://brainly.com/question/7577117
#SPJ4
