Question

Company XYZ has issued 120,000 shares of common stock, 10,000 of which are treasury stock. If you own 5,000 shares of stock in XYZ, what is your percentage of ownership in the company's capital?

Answer 1

To calculate your percentage of ownership in Company XYZ's capital, divide your number of shares by the total number of outstanding shares and multiply by 100.

Step-by-step explanation:

To calculate your percentage of ownership in Company XYZ's capital, you need to find the total number of outstanding shares. The number of outstanding shares is the total number of shares issued minus the treasury stock. In this case, Company XYZ has issued 120,000 shares of common stock, with 10,000 shares being treasury stock. So, the number of outstanding shares is 120,000 - 10,000 = 110,000 shares.

Now, if you own 5,000 shares of stock, you can calculate your percentage of ownership by dividing your number of shares by the total number of outstanding shares and then multiplying by 100. So, your percentage of ownership would be (5,000 / 110,000) * 100 = 4.55%.

Therefore, your percentage of ownership in Company XYZ's capital is 4.55%.