5,300 fixed assets 1,620,000 fixed assets 630,mon stock ?? Accumulated ret. earnings 1,278,000 Total assets $2,775,000 Total liab. & owners ’ equity $2,755,000 Total liabilities and owners ’ equity is: TL & OE = CL + LTD + Common stock + Retained earnings Solving for this equation for equity gives us: Common stock = $2,755,000 – 1,215,300 – 1,278,000 = $282,000 17. The market value of shareholders ’ equity cannot be negative. A negative market value in this case would imply that pany would pay you to own the stock. The market value of shareholders ’ equity can be stated as: Shareholders ’ equity = Max [(TA – TL), 0]. So, if TA is $7,100, equity is equal to $1,300, and if TA is $5,200, equity is equal to $0. We should note here that the book value of shareholders ’ equity can be negative.