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Distinguishing Between Common Stock and Additional Paid-in Capital Following is the 2016 stockholders' equity section from the Cisco Systems inc. balance sheet. For the $48,960millionreportedas"commonstockandadditionalpaidincapita,"whatportioniscommonstockandwhatportionisadditionalpaid−incapital? Ciscos stock price was 530.53 on july 29,2016 (the closest trading day to fiscal year-end). Determine Cisco's market capitalization that day. Round to the nearest million. Enter answer in millions. x milion

User Fefux
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Final answer:

To distinguish between common stock and additional paid-in capital, we need more information about the number of shares and par value, which is not provided. The market capitalization calculation also requires the number of shares outstanding, which isn't given, but it is typically calculated by multiplying the stock price by the number of outstanding shares as of the specific date.

Step-by-step explanation:

The question presented asks us to distinguish between common stock and additional paid-in capital from the stockholders' equity section of the Cisco Systems Inc. balance sheet. Additionally, it requires calculating Cisco's market capitalization on a specific date based on the stock price. Unfortunately, we do not have sufficient information to specifically divide the $48,960 million reported as "common stock and additional paid-in capital" into its individual components. However, the concept behind this is that the common stock value is typically the par value of the shares multiplied by the number of shares issued, while additional paid-in capital is the excess amount paid by investors over and above the par value.

For determining the market capitalization for Cisco on July 29, 2016, one would need the total number of shares outstanding on that day, which has not been provided with the question. Typically, market capitalization is calculated by multiplying the total number of shares outstanding by the stock price on a given day. As an example, if there were 10 million shares outstanding for Cisco on July 29, 2016, and the closing stock price was $30.53, Cisco's market capitalization would be calculated as 10 million shares multiplied by $30.53, totaling $305.3 million.

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