Vessel06
Sep 24, 2009, 10:03 PM
Hello All,
Does anyone know the formula for finding the Paid-in Capital in excess of par? I'd really appreciate it! Thanks in advance!
morgaine300
Sep 24, 2009, 10:34 PM
The excess of par is quite literally what it says it is: the amount above par.
If par is $10 and you issue it for $15, then you have $5 in excess of par, PER SHARE.
You can find it either by multiplying that $5 by the number of shares issued. Or you can multiply the $15 of cash received by the number of shares, and then subtract off the shares at par, which leaves you with the "excess" part.
It's actually not that difficult.